What happens if I don’t pay the taxes? Fines and penalties for not paying taxes in the United States

Although it seems strange, at some point you could forget the date on which you must declare your taxes. You may have personal problems or that you have been careless with the date and, probably, you are wondering: What happens if I don’t pay the taxes?

Imagine that your taxes must be paid no later than tomorrow, keep in mind that if you do not declare and pay taxes, surely you will have to face some consequences.

Although the tax situation of each person is different, in this installment we present some scenarios with which you must deal if you don’t file your tax returns by the due date.

What happens if I don’t pay the taxes?

First, you should know that there are different penalties for not filing taxes and not paying them.

  • If you don’t file them, you will face a penalty for not doing so. The penalty ranges from five percent of unpaid taxes for each month you delay filing taxes, up to 25 percent.. Plus, if you’re more than 60 days late, you’ll pay a minimum of $135 or 100 percent of the taxes you owe (whichever is less).
  • If you file your taxes but don’t pay them, the I.R.S. (Internal Revenue Service) will charge you a penalty for non-payment. The penalty ranges from 0.5 percent of unpaid taxes for each month you don’t pay, up to 25 percent. In addition, you will have to pay interest on the unpaid amount.

If you do not file the declaration, the I.R.S. can file a statement on your behalf. The IRS can get copies of your income forms (W-2 or 1099-MISC) and they will do this for you.

It’s best to file yourself because you may be entitled to tax deductions and credits that the IRS doesn’t know about.

In short, even if you’re only a couple of months behind on your taxes, the consequences can add up in the form of fees and interest. And the longer you go without paying your taxes, the more expensive it will be.

What’s more, you can lose the refund for not filing the return. Every year, the IRS reports that it has close to a billion dollars in unclaimed refunds.. They average about $700.

If you continually ignore your taxes, you could have a lot of expenses to deal with. The I.R.S. might:

  • File a notice of a federal tax lien (claim on your property)
  • seize your property
  • Make you lose your refund
  • Filing Tax Evasion Charges
  • revoke your passport

So, if you haven’t done it yet, don’t waste any more time. Declare and pay your taxes.

Paying taxes on time can be very beneficial, for example: A single mother could use her tax refund to pay her rent for the entire year.

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