You should always prepare yourself for some heavy duty penalties and fines if you don’t get the chance to pay federal taxes for multiple years. Missing out payment once can be a grave mistake, but missing out on years means you are doing it purposely and the government won’t spare you for that. In terms of taxes, government can get as strict as possible, and you have to pay as a victim if you fail to follow the rules over here. If you don’t want any of that to happen, you better buckle up and head for the best ways then.
Tax Situation is Different
It is not hard to state that every tax situation proves to be different. However, there are some things available, which might happen if you do not submit the tax returns within the given deadline now. First of all, let’s just start by saying that there are various penalties for not filing taxes and not even paying the same. Make sure to learn more about those penalties, as that might help and motivate you to never miss out on any future taxes ever again. Learn about Federal Tax for Non Residents too.
Failure to File Penalty Waiting For You
If you do not file, you are likely to face a failure to file penalty over here. The penalty is going to take 5 percent of the current unpaid taxes for every month the tax return is late, which can lead up to a massive percentage of 25%. On the other hand, if you end up filing more than 60 days late, you have to pay a minimum price of $135 or even 100% of taxes that you actually owe on top of your head right now.
IRS is Here To Charge You
If you have file your taxes but failed to pay them, then you have the IRS to charge you with that failure to pay penalty, which will not be a good experience for you to enjoy. Here, the penalty is going to be far less but still will hurt you in big terms. Most of the time, the IRS will actually charge you with 0.5% of unpaid taxes for every month that you do not pay, resulting to 25%, as mentioned in the previous case. Internet gets to accrues on unpaid taxes. The interest rate over here is equal to federal short term rates, with an addition of 3%.
Get The Taxes Paid on Time
Even if you are couple of months lagging behind to pay the taxes, the consequences can pile up in such a huge mess that you cannot even know what to do next. It is mainly because of the addition of fees, interest rates and definitely the penalties. If you don’t want any of that to hurt you and your credit score, you better try your hardest to pay the files and IT returns right on time and without any mistake whatsoever.
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