There are many who wonder, what happens if I do not file a tax return with the IRS? Many wait to see what occurs but, in reality there are many consequences that can occur if a tax return is not filed with the IRS.
The IRS begins by detecting if a tax return has been filed for a particular year. If a tax return has not been filed, the IRS will file your return for you on a Form 1040 which is classified as a substitute for your normal tax return. You may think this is a form of relief or as a way to save money; this is simply not the case.
The IRS then gathers tax and financial documents such as W-2 and 1099 documents filed by your employers, associates, and financial institutions. The IRS then prepares the Form 1040 with these documents along with penalty and interest (based on your failure to file) and other increases in tax obligation.
The issue with the IRS filing your taxes really comes down to the fact that they do not take into account any additional deductions such as, but not limited to: mortgage interest, charitable contributions, and medical expenses. This can cause your tax obligation to become even higher due to failure to file your tax return.
Ultimately, this can also lead to other issues including the IRS levying your bank accounts, paychecks, other assets, and even your home. It is your responsibility to file your taxes accurately and on time.
Do not let this happen to you – Let Gary M. Kaplan, C.P.A., P.A. prepare your tax return. Call us at 1 (866) 643-3560 for your free consultation.
