Pay Tax On Time To Avoid Penalty: Explore The Alternatives For Unpaid TaxQuBY2E | March 27, 2018 | 0 | Tax Attorney
People residing in a country earn money for living. They must meet some unavoidable expenses. Male members have the responsibility to see whether his family is suffering due to the financial crisis. Thus, people look for the better job with high salary. But, at the same time, you too have some responsibility towards the country and society. It is important to pay tax on a regular basis if you are among the taxable income group. Our government needs the tax for the development of the country. It is the time to speak to the tax attorney to find out the sum you need to pay as tax.
Consequence of not paying tax
Many citizens are observed avoiding the tax payment. Government can take some drastic steps against them for not paying tax. Following are some of the consequences:
· Penalty on failure
The Government mentioned a stipulated timeline within which the tax must be paid. But, if you fail to pay within that time, penalty will be allotted for you. Such residents need to pay an extra amount of 5 percent on the unpaid tax amount, every month. This percentage can also increase to 25%. Again, if the duration of filing is more than 60 days, an amount equal to 100 percent of taxes or $ 135 ( whichever is less) must be paid.
· File tax without pay
Sometimes the citizens go ahead with the filing of tax but do not pay the sum. In such a case also, you must be ready to face the consequences. In this case, there will be charges right from the IRS authority. You must pay 0.5 percent of the taxes that you have not paid. This can also go high and reach 25%.
· What happens when you regularly ignore taxes?
· Some people keep on ignoring tax on a regular basis. They may not know the consequence which they are going to face. Following are the steps IRS may take:
o Your property can be seized
o File you a notice of federal tax lien
o You may be charged for tax evasion
o Individuals may be asked to forfeit your refund
o Lastly, IRS may revoke your passport
· What can you do if your tax payment is due?
· You must look for the alternative if you are unable to pay tax on time. Following are some facts:
o An installment plans
o The installment payment plan is the best idea when you cannot pay so much tax amount at a time. You have to fill up the form 9465 along with the installment agreement request to IRS
· Credit card
· Credit card can help you pay your left-over tax in one shot. But, in this content, the credit card also has a charge of 2.5% on the payable amount.
· Offer in compromise
· Sometimes, the residents owe too much of tax amount. In no way, they can pay such a big amount. In such a situation, you must enroll in the program known as ‘offer in compromise’.
Paying taxes on a regular basis is a good habit for every citizen. Non-payment of taxes can lead to the penalty. You may even go for several alternatives for late tax payment.