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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.

  1. Banks look at tax returns as a qualifications for loans. If you haven’t filed, it will be hard to prove your income.
  2. 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.
  3. 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.
  4. 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.