Why Non-Filing Taxes is Not an Option and How to Do It Correctly
As the saying goes, “The only things certain in life are death and taxes.” While it’s tempting to avoid the latter, non-filing taxes is not an option. Whether you’re a self-employed individual or an employee, the Internal Revenue Service (IRS) requires you to file your taxes every year. Failure to do so can result in penalties and interest, and in some cases, even legal action.
So, why do some people choose not to file their taxes? One common reason is the mistaken belief that they don’t owe any taxes. However, even if you don’t owe any taxes, you still need to file a tax return if your income exceeds the minimum threshold set by the IRS. The minimum threshold varies depending on your filing status and age, but it can be as low as $12,950 for the year 2022 for single taxpayers under 65 years old.
Another reason for non-filing taxes is the fear of owing money to the IRS. While it’s understandable to feel anxious about owing money, not filing your taxes will only make the situation worse. The IRS can charge you a failure-to-file penalty, which can be as high as 5% of the unpaid taxes per month, up to a maximum of 25%. On top of that, the IRS can also charge you a failure-to-pay penalty, which is 0.5% of the unpaid taxes per month.
So, how do you file your taxes correctly and avoid penalties and interest? The first step is to gather all the necessary documents, such as your W-2 form or 1099 form if you’re self-employed. You also need to know your filing status, which can be single, married filing jointly, married filing separately, head of household, or qualifying widow(er). Once you have all the information, you can use tax preparation software or hire a tax professional to help you file your taxes.
If you’re unable to pay your taxes in full, you can still file your tax return and arrange a payment plan with the IRS. The IRS offers several payment options, including installment agreements and offers in compromise, which allow you to pay your taxes over time or settle for less than the full amount owed.
In conclusion, non-filing taxes is not an option, and it can result in penalties and interest that can add up quickly. If you’re unsure about your tax situation or need help filing your taxes, don’t hesitate to seek professional advice. Remember, filing your taxes correctly and on time is not only a legal requirement, but it’s also a responsible thing to do.
If you need help filing your taxes or have questions about non-filing taxes, contact us today at 1-888-455-3111 or visit www.ataxdefense.com. Our experienced tax professionals can guide you through the process and ensure you comply with IRS regulations. Don’t wait until it’s too late – let us help you avoid penalties and interest.