The Importance Of Keeping Current With Your Taxes

Nobody likes to pay taxes. But keeping Uncle Sam happy will, in turn, keep you out of trouble. If you don’t stay current with filing income tax, here are some of the consequences of not doing so:

• Fines and interest will be assessed. You can also get prison time, more for each year of not filing income tax.
• The IRS will file a substitute return for you. So you’re thinking, who cares, they do the work for me. The problem is that their return is based only on information that the IRS has from other sources. Therefore, it will not include any additional exemptions or expenses you may be entitled to and will probably overstate your real tax liability. Even if the IRS has already filed an income tax return for you, you can file your own return to make sure you take advantage of your exemptions and deductions. The IRS should adjust your account to reflect those correct figures.
• Once the tax is assessed, the IRS will start the process of collecting. This can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.

If you’re already behind on your taxes, you may want to consider hiring a tax law attorney. 

A financial attorney who has experince in tax law can negotiate with the IRS on your behalf and help you create a payment plan.