Tax Day has come and gone. Those who have not yet paid their taxes may have many reasons for doing so. They may have procrastinated and missed the deadline. They may not be able to pay. Whatever the reason for the failure to pay, it is important to take step to resolve the issue as soon as possible.
What happens if I do not pay my taxes?
It will depend on what happened. If it was an honest mistake, the taxpayer who fails to pay can face steep financial penalties and interest on any due taxes. If the IRS believes the failure to pay was an intentional attempt to avoid tax obligations they could push for serious criminal charges, like tax fraud. If successful, a conviction for tax fraud can lead to hefty financial penalties as well as prison time.
What should I do if I did not pay my taxes?
Those who chose not to file their tax returns because they cannot pay their bill have options. The Internal Revenue Service (IRS) strongly recommends these taxpayers file their return as soon as possible, even if they cannot pay the bill, to avoid additional penalties for a failure to file.
Taxpayers can also request an extension to get more time to complete their taxes. This provides an additional six months to file tax returns. It is important to note that an extension to file is not an extension to pay the tax bill. The IRS will still likely apply penalties for late payment, but this option can remove the additional penalty for not filing your tax returns.
The IRS also has options for those who cannot pay their full tax bill but are looking to make smaller payments.
Taxpayers must meet certain requirements in order to qualify for a repayment plan.