By elia lopez
Aug 30, 2023, 16:31 PM EDT
Having a debt with the Internal Revenue Office (IRS) is not recommended. Therefore, this time we are going to explain what happens if you do not file your tax return on time.
And it is that, in addition, that your debt is increasing, you may be affected by some benefits to which you could apply.
If you did not file your tax return on time, it is better to do it as soon as possible, and before you receive a request from the IRS.
Submit your expired returns
For people in this situation, the government offers plans to pay off debts with the IRS.
The way to file late returns is the same as when you file your taxes on time.
Doing it before you receive a notice from the IRS will avoid paying interest and penalties for the delay.
What happens if you don’t file your tax returns?
In addition, you risk missing out on a refund you may qualify for, or you may no longer be able to claim tax credits, such as the Earned Income Tax Credit.
If you’re self-employed and don’t file taxes, nothing will be reported to the Social Security Administration either, affecting your retirement or disability funds.
Another problem that you could have by not filing your tax returns on time is that you could lose loans, since financial institutions will ask you for your IRS receipt.
You can also pay in installments
In the event that you want to pay your taxes, but do not have sufficient resources, you can also do so, since you can request an additional 60 to 120 days to pay installments. For that you can call 800-829-1040.
You can also use an installment agreement or you may qualify for a transition offer.
But if you don’t file your due tax return, the IRS will do it for you, but you’ll lose the opportunity to get credits or deductions for which you qualify.
“Such a statement may not give you the credits or deductions for which you qualify. We will send you a Notice of Deficiency CP3219N (90-day letter) proposing an increase in your taxes,” the IRS warns.
“If you do not take any of these actions, we will impose the additional taxes. If you have already received notice CP3219N, you cannot request an extension of time to file the return”, highlights the IRS.
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