What happens if you do not pay taxes in the United States
People don't file tax returns for a variety of reasons: a difficult divorce, the death or illness of loved ones, and sometimes they just don't want to, thinking that the IRS just won't notice. Edition Bloomberg tells what happens if you decide not to file a return.
First, nothing happens
Every time a person receives a W-2, a 1099 or other tax form, the IRS receives a copy, and the agency's computers analyze who hasn't filed a tax return. If you are owed a refund, the IRS doesn't really care if you file for a refund. After 3 years you will no longer be eligible for it.
The system marks the tax payer a checkbox if he owes money to the IRS. However, further action may take several years, says Jonathan Boches of Tax Defense Network. The IRS may be interested in you selling a property, borrowing or buying shares.
Chances are you won't go to jail
The IRS very rarely sends tax evaders to jail. Cindy Hockenberry of the National Association of Tax Professionals says so. And only because if you go to jail, you won't be able to work, and the Internal Revenue Service won't be able to collect the money owed to it from your paycheck.
A lot of paper work
When the IRS finds out that you owe money, it automatically generates a tax return for each year in arrears. Then the service sends you an invoice; if you do not respond quickly, the process of seizing your assets begins.
The IRS probably will not include all deductions to which you are entitled. Complicated tax issues can take more than a year, says Jerry Love, an accountant and financier.
You have to do much more than you thought.
If you owe money to the state, you will have to pay it back, not forgetting interest and penalties. If you don't pay your taxes, the IRS charges you up to 25% of what you owe, plus an additional 25% for paying your bill on time.
The government will still get the money
There are 3 ways to resolve a tax issue: pay your taxes immediately, pay them in installments, or reduce your tax bill in some way. Declaring yourself bankrupt can save you some tax debt and you can pay off as much as you can.
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