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
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
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
consider such a serious resolution as it comes with dire consequences
both in the short and long-term.