Do You Make These Mistakes: You Don’t File Your Tax Returns on Time
I have written about this topic a little bit on this blog before and about how important it is to file your tax returns on time every year. Many people believe that since they do not have enough money to pay their taxes they simply do not prepare a return, or they prepare a return and do not submit it.
It is a mistake not to file your tax return. There are a couple of reasons for this:
- Unnecessary Penalties. If your return arrives one second late the IRS is going to file a late-filing penalty against you. Eventually, you are going to have to pay the taxes so this penalty just piles on unnecessary money that you have to pay back. Simply filing the tax return on time eliminates this penalty.
- Statute of Limitations for Collections. The IRS can only enforce collections on an unpaid liability for ten years after the tax has been assessed. In order to have the tax assessed you must file your tax return. If you don’t file a tax return the IRS can come after you for those taxes you owe based on a return they prepare for you (which is never good) for the rest of your life.
Next time you are looking at owing the IRS more than you can afford to pay at tax time, be sure you at least file your return to save yourself some money and get the clock ticking on that statute of limitations.
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