Penalties If You Fail to File Tax Returns
If you fail to file a tax return, fall behind in doing so, or fail to pay your taxes on time, the IRS will assess penalties and interest. The longer you wait to pay your taxes, the higher the interest you have to pay.
If you do not pay taxes, the IRS can seize the assets which you currently own, including bank accounts and real estate. If the IRS does not seize your real estate immediately, it may file a lien against it, making it nearly impossible to sell your property to a third party. If you receive income from wages, pension, or Social Security, the IRS can garnish that income until your tax debt is repaid.
Get ready to face criminal penalties
In addition to penalties and increasing interest rates, you could also face criminal penalties if you are having trouble with the IRS. The IRS can periodically file for criminal charges against an offending citizen in order to maintain a threat, and for many people that alone is intimidating enough. Criminal charges can result in one year of imprisonment in federal prison, a fine of up to 100,000 dollars -- or both -- for every tax return you fail to file.
However, tax attorneys can negotiate on your behalf with the IRS in providing tax relief, reducing the amount of tax, and avoiding criminal penalties.
Tax lawyers can help
If you live in the Pennsylvania area and face tax problems, do not hesitate to get in touch with an attorney who can guide you in understanding tax laws and help to put your tax problems behind you.
Information in this post gathered in association with a Reno bankruptcy attorney
Copyright© 2012 LexisNexis. All rights reserved.