4 Reasons why you should file your tax return, EVEN IF YOU CAN’T PAY!

1. You can be assessed a failure to file penalty.

The IRS may assess a failure to file penalty that can add up to 25%+ to your tax bill. On top of that, the IRS charges interest on the taxes and penalties you owe.

2. The IRS can prepare a return for you.

It’s called a “substitute for return”. But, this return probably won’t be in YOUR best interests. The IRS will prepare it with income information from your bank, employers, and others and you probably won’t get any the credits or deductions you are entitled to.

3. Not filing can be a criminal offense.

Though it doesn’t happen very often today, some may remember that Chicago mobster Al Capone wasn’t prosecuted for any of his violent crimes or even for filing an incorrect return. He was prosecuted for not filing a return at all! Still, there can be stiff penalties for willingly and knowingly not filing a tax return.

4. The IRS will work with you if you owe.

The IRS offers several options such as extensions and payment plans for people who can’t pay their taxes by the due date. and even programs for people in financial hardship situations.

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