fbpx

Bob Jablonsky & Associates Blog

Thinking of Not Filing Your Tax Return? Why That’s Not a Good Idea!

by | Sep 2, 2020

With all that’s going on in the world, the negative impact on businesses and the layoffs of W-2 workers, it can be tempting to put off filing your taxes, particularly if you will owe taxes.

In the best of times, most taxpayers dread the tedious task of compiling their financial records, tax documents and filing their taxes.  However, if you believe you will owe taxes and are unsure of where the economy in a week from now, much less a year from now, you may be tempted to attempt to hide from the IRS.

 

Reason To File Timely – Penalties

So why shouldn’t you?  To make it simple, penalties and interest.

  • Late Filing Penalties for your 1040 return is 5% per month, up to 25% in total.
  • While Late Payment Penalties are less with only 1/2 % per month, those can continue to grow to a maxim at 25% as well.
  • Do you have an ownership interest in a Partnership or S-Corp? If so, there’s a $200 per month per shareholder penalty for late filing.
  • Remember that not only will you be paying interest on the taxes owed, but the penalties as well.

 

Other Reasons To File Timely

  • Eliminate Tax Identify Theft. The more time that you are not using your Social Security Number to file a tax return legally, the longer it’s available for criminals.
  • The sooner you file and the tax is assessed, the sooner the IRS 10 year clock to collect expires.
  • What if you are owed a Refund? You only have 3 years to file the return to get refund.  Don’t miss your chance!

.

What Happens if You Don’t File?

The IRS is authorized to file a Substitute for Return (SFR) on your behalf if you don’t file.  However, the IRS is not in the business of trying to get you a refund or reduce your tax owed.  The IRS will claim income but will request the absolute minimum in deductions, the worst filing status, and won’t claim credits.  If they believe you’re owed a refund, they won’t file the SFR.  Of course, once they file, the late filing penalties and late payment penalties (plus interest) go back to the due date of the return.

 

Have Questions or Need Help?

Call us at (972) 821-1991 or send an email to [email protected] if you have questions or need assistance.  You can learn more about us at https:\\jablonskyandassociates.com.

 

Bob Jablonsky is the founder of Bob Jablonsky & Associates. He has spent his career helping taxpayers resolve tax issues and get back on track with the IRS. In addition to tax resolution his firm also prepares hundreds of tax returns every year for both individuals and small to mid-sized businesses.

Bob is an IRS Enrolled Agent (EA), which is an elite credential issued by the Internal Revenue Service to professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation, and representation matters. An Enrolled Agent license is the highest credential awarded by the IRS and is recognized across all 50 states. Additionally he is a CMA, or Certified Management Accountant, a designation for financial controllers and CFOs (Chief Financial Officers), as well as an Advanced Certified Quickbooks Pro Advisor.

Get in touch

1900 Jay Ell Drive
Richardson, TX  75081

(972) 821-1991

}

Mon-Fri 8:00am - 5:00pm

Schedule an Appointment

Ready to get started? Fill out the form below to schedule an appointment!