Filing your taxes every year is an important responsibility as a taxpayer. However, some people may not file their taxes for one reason or another, leading to unfiled taxes. In this blog, we'll discuss the consequences of unfiled taxes and why it's important to file every year. We'll also touch on the importance of hiring a tax attorney to help with any tax debt issues.
Consequences of Unfiled Taxes
There are several consequences of unfiled taxes. First and foremost, the IRS can assess penalties and interest on any unpaid tax debt. This can add up quickly and result in a significant amount of debt over time. Additionally, the longer you wait to file your taxes, the more difficult it can be to resolve any issues that arise. For example, if you have unfiled taxes from several years ago, it can be challenging to gather all the necessary documentation to file those returns and resolve any resulting tax debt.
Another consequence of unfiled taxes is the risk of collection actions by the IRS. If you have unpaid tax debt, the IRS can begin to collect taxes, garnish payments, bank levy, and tax liens. These actions can be disruptive and financially damaging, making it all the more important to file your taxes every year and resolve any tax debt issues in a timely manner.
Importance of Filing Every Year
Filing your taxes every year is crucial for several reasons. First, it's required by law. Failure to file your taxes can result in penalties and interest, as well as potential legal action by the IRS. Filing your taxes every year also ensures that you're up to date on any tax debt issues and can work to resolve them before they become more challenging to address.
Additionally, filing your taxes every year can help you take advantage of deductions and credits that you may be eligible for. By filing your taxes, you can ensure that you're not leaving money on the table and that you're maximizing your tax savings.