You can be held personally liable for the payroll taxes you didn’t pay!
If you are thinking of not filing a tax return, you should think again. You may think you’re sticking it to the man, but you’re really sticking it to yourself. Filing a tax return is just one of those things you have to do in this country. Don’t shoot the messenger, but here are a few reason why you should file a tax return.
- Banks look at tax returns as a qualifications for loans. If you haven’t filed, it will be hard to prove your income.
- Not filing can open you up to an audit. There are various documents that are filed with the IRS that support your income history. If there is no record of a filed return, you can trigger an automatic audit. Once an audit is started, the IRS has right to audit other years.
- The IRS will file a return for you. If the IRS files a return for you, they will not take into consideration every credit and deduction you may qualify for. Therefore you may have to pay a higher tax liability. Failure to pay may result in suspension of future refunds, way garnishments, or withdrawal of funds from your bank account.
- It is a criminal offense. If you purposely avoid filing a return, you can be charged with crime. Although there aren’t many cases where individuals were prosecuted for not filing a tax return, you can be forced to pay high penalties.
According to the IRS about 1.2 million taxpayers did not file a return since 2015. As a result, there is almost $1.4 billion in unpaid refunds. So if you think you should not file, maybe you should think again. There may be money waiting for you.