What Happens If You Forgot to File Taxes?

July 1, 2022

“I forgot to file taxes!” It can be shocking to realize that you haven’t yet filed your taxes, especially if the deadline was several months ago. To prevent further problems, you should speak to a Louisiana tax resolution specialist as soon as possible. A firm like Geaux, which has several offices in the area, can provide New Orleans tax resolution, Lafayette tax resolution, and Mandeville tax resolution.

Your specialist will examine your situation and then help you file your taxes as soon as possible to avoid further penalties. If you don’t know how to pay your bill, you can apply for the IRS’s forgiveness program, or you can ask to have your penalties removed. Keep reading to find out what you should do if you forgot to file your taxes and how you can minimize your risk of making tax mistakes in the future.

I Forgot to File Taxes: What Now?

Consequences include hefty penalties and, if you don’t pay your taxes for many months, aggressive collection activities. Because the fees for not filing your taxes are so high, experts advise you to immediately submit your return even if you don’t yet know how you are going to pay.

The Penalties for Filing and Paying Late

If you haven’t filed your taxes and the deadline was a few days ago, you don’t have to worry. You might pay some interest, but the fees won’t be significant. However, once it’s been more than a month since the deadline, the penalties start to add up. Every month, 5% of the outstanding balance will be added to your bill, up to a total of 25%.

People who file their taxes but can’t pay them will also have penalties on their accounts, but they don’t accumulate so quickly. Every month you fail to pay, the IRS will add 0.5% to your balance. Thus, you will only have to pay 6% extra if you delay paying by the year, but you’ll have to pay 25% extra if you don’t file your return at all. It’s also important to remember that there will be interest added to your account, which further increases your tax bill.

What Actions Can the Government Take?

As you can see, the fees and penalties accumulate quickly if you don’t file and pay your taxes on time. But what happens to people who don’t pay even when they’ve received warning letters from the IRS? Unfortunately, the government has almost unlimited collection power, so your savings, assets, and income are at risk if you refuse to pay your taxes.

The IRS can place a lien on your property, which means that they can access it if you don’t pay or make alternate arrangements with them. What’s more, they can garnish your wages or take money directly from your bank account. If you’ve received a letter from the IRS and you believe you’re at risk, you should contact a Mandeville tax resolution specialist immediately.

What If I Can’t Pay My Taxes? How a Louisiana Tax Resolution Specialist Can Help

Even if you know you can’t pay your taxes at the moment, you should file them as soon as possible because the penalty for late payment adds up much slower than the penalty for late filing. People who are not sure how to get started should contact a Louisiana tax resolution specialist, who can help them figure out which of the IRS’s forgiveness programs they are eligible for.

A good New Orleans tax resolution professional will also determine whether you could get your penalties removed from your account. Sometimes, this is an easy yet effective way of reducing the bill without having to spend a lot of time negotiating with the government. What’s more, the expert will work with you to improve your long-term tax strategy, so you can avoid issues in the future.

Using the Government’s Forgiveness Scheme

The IRS expects everyone to pay their taxes, but they understand that difficult situations can arise. For this reason, they have come up with a comprehensive forgiveness program that allows people to delay or reduce their payments if they are in financial difficulties. Your tax resolution specialist will explain the various options and then help you determine which one is the most suitable for your situation.

A common solution is the installment agreement, which allows you to pay the outstanding amount over a longer time period of up to six years. If you only owe a small amount, you can gain access to this online, but if your bill is very large, you have to speak to the IRS directly. Some other options are the offer in compromise, which reduces your bill, and “currently not collectible” status, which proves that you are not able to pay any taxes at this time.

Getting your Penalties Abated

As discussed above, people who have missed the filing deadline by five or more months will have to pay 25% more than they originally owed. If it’s the first time you’ve had trouble with the IRS, you might be able to have this penalty abated.

Similarly, people who have a good reason for not filing or paying, such as a serious illness or a death in the family, can benefit from penalty abatement. Although this doesn’t wipe out your entire tax bill, it’s a great way of reducing what you owe.

Avoiding Future Mistakes

If you’ve googled “I forgot to file taxes,” it’s likely that you’ve had trouble organizing your tax documents in the past. Doing your taxes is stressful, especially if you don’t know how you will pay for them, so it’s understandable that you have delayed the process. But as you can see, failing to file can have severe consequences, so you should do everything you can to avoid it in the future.

A good Lafayette tax resolution specialist will help you create a schedule that prevents you from making mistakes in future tax years. They can give you advice about the best software or programs to use, and they can even refer you to accountants who can do your taxes for you. That way, you won’t put your assets and your future at risk again, and you can avoid hefty penalties.

How to Find Expert Help with New Orleans Tax Resolution, Lafayette Tax Resolution, or Mandeville Tax Resolution

Getting help from a professional is almost always the best way of dealing with tax problems. To get started, you should look for resolution specialists in your local area. You can find out a lot from the website, which should contain biographies of the employees and helpful advice. It’s always best to work with someone who has extensive experience with the government.

People who have googled “I forgot to file taxes” could benefit from the advice of a Louisiana tax resolution specialist. An expert can help them file the return and then figure out how to pay for their taxes or apply to the government’s forgiveness program. Call us now at Geaux tax resolution. We have various offices in the local area, so we can provide New Orleans tax resolution, Lafayette tax resolution, and Mandeville tax resolution.

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