by 
The Curious Bag
-
If you file your taxes late and also have unpaid taxes, then you might be subject to fines, penalties and collection efforts by the Internal Revenue Service (IRS). Although payment in full saves money, the IRS often allows taxpayers to follow a payment plan to settle the taxes and penalties due. Extreme cases of tax evasion might result in criminal prosecution.
Significance
The IRS files a return for taxpayers who do not file their own returns. Taxpayers who fail to file tax returns may have their tax liability overstated by the IRS.
Considerations
If delinquent tax filers and payers enroll in a payment plan, then they must fully comply with the plan's terms. If you fail to meet the terms of the plan and do not contact the IRS, then they may seize your assets.
Warning
Be sure to keep in touch with the IRS if you enroll in a payment plan. If you miss a payment or encounter unexpected difficulties, then notify the IRS.
Potential
Taxpayers who continually fail to file a return or pay their taxes face the possibility of criminal prosecution.
Potential
Collection efforts may include placing a levy on wages or bank accounts, as well as a federal tax lien on your property. The IRS wants to assist you with free help in filing and paying any federal taxes due.
Source:
Internal Revenue Service: Haven't Filed an Income Tax Return? Here's What to Do
More Information:
Internal Revenue Service: Payment Options - Ways To Make a Payment
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC