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Are you thinking about not filing a tax return?

On Behalf of | Jan 12, 2021 | Income Taxes

Tax season has arrived, and you and many other Atlanta residents may be worrying about what that could mean for your financial situation. After an uncertain year regarding employment, income and other aspects of life, you may wonder whether filing your taxes is even in your best interests right now. What if you cannot pay what you owe?

First, it is important to keep in mind that not filing your tax return does not mean that the Internal Revenue Service will simply forget about you. It may seem that way for a while because the IRS has many taxpayers to consider, but eventually, the agency will figure out that you have not filed your returns or paid what you owe.

Why file anyway?

Even if you anticipate that situation being less than favorable for you as the taxpayer, it is often best to file your return anyway. Certainly, you may face a tax bill, but if you do not file, the repercussions can only get worse. The IRS will likely start sending notices about your lack of return and payment, and possibly, the agency will start looking for ways to get what you owe, which could include garnishing your wages or putting a lien on your property.

Additionally, taxes and tax laws are complicated, and many taxpayers have a difficult time predicting exactly what they will owe. In some cases, taxpayers are pleasantly surprised to learn that they are getting a refund after expecting the worst. As a result, it may be in your interests to file your tax return because you could possibly be in line for a refund.

Filing when you cannot pay

Even if you do end up owing money to the government, it could still work in your interests to file your return. If you do not file, you could face additional penalties that make your financial situation even more difficult. After filing, you may have the ability to work out a payment plan with the IRS or take advantage of other tax relief options if you qualify.

Knowing what your best options are can certainly be tricky when it comes to dealing with taxes. Fortunately, you do not have to try to figure out your best course of action alone. An experienced tax law attorney could help you assess your situation and address any tax returns you need to file, including those you may not have filed in the past.