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How Falling Behind on Taxes Hurts

There are many reasons why some tax-payers each year might feel as though don't know how, cannot, or can't afford to pay their taxes and therefore shouldn't file. This however, couldn't be further from the truth. In fact, refusing to file taxes at all is a sure-fire way to put yourself in bad standing with the government and in turn will only add to the 'pain', fees, etc. of failing to do so.

Although some companies might advertise services to settle out your IRS debt at pennies on the dollar or less, it's important to do your due diligence in research (such as through the Better Business Bureau) to ensure any professionals or organizations you're dealing with are accredited and reputable - as there are plenty of scams out there. Additionally, it's only logical to appreciate sharing such personal information could easily lead to unwanted purchases or even identity fraud if fallen into the wrong hands.

While some might feel that it's impossible to pay their IRS taxes for the year and in turn refuse to file, it's worth mentioning that in reality any and all of your employers for the previous (obviously excluding otherwise 'illegal under the table jobs') will have reported your earnings, so you can’t exactly 'escape' the responsibility. In reality, communication is key, and believe it or not although it might seem so, the IRS is not out to make your life miserable or difficult. In fact, there are some deferment options given critical circumstances or emergencies in some cases, and payment plans for plenty of others.


Ultimately, your money is your responsibility and how you communicate with the government or lack thereof can make all the difference in the long run. For example, the IRS can very well (legally) and has in the past put liens on tax-payers property who refused to pay, and even garnished wages.

These are obviously scenarios and repercussions that nobody expects to experience, nor wants to have to for obvious reasons. Within the constraints of United States law, the IRS is very much so entitled to take such measures if it so feels necessary and can demonstrate probable cause beyond reasonable doubt for taking such a course of action to do so—in which a taxpayer for example otherwise refused to pay his or her taxes, or in many cases 'back taxes'.


While it is possible to arrest someone for overdue taxes, and even request the deportation or extradition of a tax-payer from another country in some instances, most of the time such drastic measures, as well as warrants being issued are typically reserved for those whom have acquired over-time much more substantial levels of tax-debt, for example, a quarter million or more - $250,000.00. In other instances however, some individuals may very well consider and explore the options, pros, and cons of applying for bankruptcy, however again, this is typically a route reserved for only the most extreme of circumstances - and typically anyone $20k or less in debt should not even consider such a serious resolution as it comes with dire consequences both in the short and long-term.




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