There are tons of reasons to pay your taxes on time-some of the more serious reasons are penalties, fines and even jail time! Despite imminent retribution, countless Americans fail to pay taxes on time and owe money to the IRS. It has been estimated by the Internal Revenue Service that more than 8 million Americans owe back taxes. Furthermore, these Americans owe more than $80 billion in unpaid taxes, and penalties with interest.
There are many things that lead a person to fall behind on taxes. Some common reasons include: forgetting the due date; being too busy to file; confusion over the large amount of paperwork; major life events such as death, illness, divorce, and unemployment. For some people, money is an issue. They just can’t afford to pay their taxes. If you are someone who has fallen behind on your taxes due to life’s circumstances, it is crucial to contact a tax resolution lawyer today. A simple remedy may be available.
Here are some other reasons why Americans get behind on their taxes . . .
Estimated Tax Payments
One frequent reason American business owners, the self-employed, and entrepreneurs owe money on taxes is due to falling behind on estimated taxes. Being your own boss comes with additional responsibility of paying your taxes on a monthly, or quarterly basis, contingent on your income and estimated tax payments. If you are an employee, you have the added benefit of an employer withholding your taxes, which eliminates forgetfulness. Beware of exposing yourself to tax liability, and remember to pay your estimated taxes on time.
Withholding Too Little
As mentioned above, employers are usually instructed by the IRS to withhold taxes from your paycheck. If your employer withholds too little taxes from your earnings, you will be responsible for paying your tax debt come tax season. The IRS refers to this as “under-withholding.”
Forgetting to File
If you have failed to file a tax return, you may be opening yourself up to potential tax penalties. All Americans who live and earn income in the United States that earn more than a certain amount during a fiscal year are obligated to pay taxes and report their income on a federal tax return. The IRS uses three criteria to determine whether or not you are required to file a return, they are income, filing status (married or single), and your age. If you earn over a certain amount of income, tax laws state you have to file taxes.
Find the Help You Need
To steer clear of owing the IRS taxes, it is important to learn more about how to pay your taxes, file on time, and avoid serious tax penalties.
If you or someone you know is in serious trouble due to unpaid taxes, it is important to schedule an appointment with a certified tax resolution lawyer. The professional attorneys at U.S. Tax Shield have the industry knowledge and years of experience you need. US Tax Shield resolution specialists will design a plan that is customized to your individual circumstances. Contact us today!