Health & Fitness
What if someone has not yet filed a tax return?
About 200,000,000 Americans file tax returns each year. It's the right thing to do and it's to your benefit that you file.
Perhaps you know of someone who has not filed a tax return for several years. If nothing is done, the IRS will file a substitute return. The best action a non-filer can take is to file returns for all missing years, because the taxpayer has information about deductions, credits and exemptions that the IRS doesn’t know about. The IRS substitute return is likely to assess a higher tax.
Once a tax is determined, the collection process, (a levy on wages or bank accounts, a lien on a home or property or a payment plan), can begin.
Of course the payment plan is by far the best option. See IRS Form 9465 for more information about an installment agreement. Failure to file and failure to pay penalties are monthly five and one-half percent of the late tax. The annual interest rate on the tax and accrued penalties is 3%. SO, don’t delay. If you know of someone who has not filed a tax return, please encourage them to file before the IRS takes action.
