It’s tax season again, which means spending at least a few hours of what little free time you have compiling paperwork and completing forms. No one wants to do their taxes, but the deadlines are in place for a reason, and people who don’t file on time face costly penalties. If you need help with tax preparation this year, turn to Erie & Associates, P.C. in Texarkana, TX.
What happens if you don’t complete your tax preparation on time? Here are three consequences you can expect if you miss the deadline:
The Penalties Add up Quickly
If you file your taxes late, you can expect to pay 5% of the amount you owe in addition to your total tax bill for every month you don’t file. The amount you pay in penalties cannot exceed 25% of your total tax bill, but any amount is still more than you should have to worry about when it’s tax time.
The IRS Will Work With You
At the end of the day, the IRS wants what it is owed, which is why they are willing to work with individuals who cannot pay their taxes in a single lump sum. If you fail to file your return on time, the IRS will still work with you when it comes to arranging a payment plan, as long as you meet the criteria for setting up an installment agreement. Since the failure to file penalty is typically more money, you should not put off filing simply because you don’t have the funds to cover your tax bill.
The Penalties Do Not Go Away
If you owe money to the IRS, it will not go away. In fact, there are certain tax debts that you cannot even eliminate through bankruptcy. Thus, it’s important to always make an effort to file your tax return on time.
If you need help with tax preparation this year, turn to Erie & Associates, P.C. in Texarkana, TX. Visit the website to learn more about this accounting firm and the various bookkeeping services offered. To schedule a meeting, call (903) 792-6651.