Whether you are employed by a business owner or self-employed, there is an obligation to pay taxes to the IRS. Paying taxes while working as employee is usually easy, as money is usually automatically deducted from each paycheck. However, it is still your responsibility to file a tax return each year, even if you are only due for a refund and don't owe the government any money. For someone who is self-employed, he or she can land in deep trouble by not giving the government a percentage of his or her profits, especially when there is a lot of money involved. If you are interested in learning more about income taxes, continue reading this article for helpful information.
Will You Go To Jail For Not Filing Taxes?
Although you are obligated to pay your income taxes, failing to do so will not immediately land you behind bars. The government will usually give you a few years to file your taxes before taking serious action. However, you must also keep in mind that if you fail to file, you can end up owing the IRS a lot more money than you think. The reason why is because there is a penalty for filing late, or not at all, that is a percentage of what is owed. The penalty fees can accumulate to be a substantial amount of money.
What If You Can't Pay The Taxes Owed?
If you file your income taxes and fail to pay what is owed, it is when the IRS might take serious legal action against you. The best step for you to take if you are unable to pay the money is to contact the IRS and make a payment arrangement. If you have no income to even make a payment arrangement, it is still wise to inform the IRS about it. Failing to take action will make it seem as though you are performing an act of tax evasion, which is a serious crime. Tax evasion is the most common reason for people being fined, jailed, or both after the IRS takes action.
Why Should A Tax Preparer Be Hired?
You should obtain tax preparation services because it will decrease the risk of mistakes being made on your return. Another reason why is to ensure that you are able to take advantage of every credit that you are qualified for. For instance, if you have children, you might be due one or more credits that will increase the amount of your refund.Share