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Mar
03
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Sometimes you may not have the money, or the time to check your documents, expenses and wages and you are likely to post-pone your tax payment until the last day or even de-pass the term. Here are the reasons why you shouldn’t do it and pay your RG Brenner debts in time:
- The IRS will make you pay penalties and interest for every month of delay which will increase the tax amount due. If you do an extension request, the penalties will be only 0.5-1% of the amount due; otherwise, you may pay with 5-25% more than if you would’ve paid in time. However, it’s better to file without paying than not to file at all; penalties are lower for those who file and post-pone the payment.
- People from the IRS will file a return in your place, only that this substitute is based on the information they receive from other different sources and do not include exemptions or expenses that you might use to decrease the payable amount; so, not only you’ll pay penalties, but you’ll also lose the possibility to deduct expenses.
- Once they’ve establish the amount they must obtain from you, they can start collecting it; this includes levy on wages or banc accounts and even a federal tax lien against your properties – it an really be embarrassing to go the little neighborhood shop (where everyone knows everyone) and hear the sales-person saying out loud: “It seems that your account has been blocked, can you pay cash?”.
So, if you feel that you won’t be able to pay in time, ask for an extension; if you’ve forgotten to do that and the IRS filled a substitute return for you, it’s still not too late to fill the return yourself, using all the deductive means and send it to them. You will pay penalties, but at least you haven’t spent money on charity, studies and retirement funds for nothing.