Nobody wants to sift through forms and papers that ultimately lead you to handing over money to the federal government. But look at the bigger picture, the roads, the armed forces, healthcare and more all need to be funded. We cannot live in a society whereby we simply refuse to pay any tax at all. You work hard and you make sure that you earn enough money for your living standard not to decrease. Income tax is one of the most avoided in the entire country. Many people simply don’t pay the taxes they should gerrymander their forms to project a different picture such as lying about earning less than they do, and others make honest mistakes. Either way, the IRS is charged with the task of chasing up citizens that do not pay their fair share. It’s a very serious issue that is treated and dealt with in the same manner. What could happen to you if you don’t pay income tax?
Failure to file
Not informing the government of how much you earn is almost as bad as saying you don’t earn anything. The government relies on everyone to stick to the program and play fairly. You can’t morally ask your neighbor to pay more just because you don’t want to. The first thing that will happen if you fail to file accurate information on your tax return, is a penalty fee. This can be $135 or even up to the entire tax owed itself; depending on how long you have kept the government in the dark and how substantial the figure outstanding is. You may also face criminal charges if your behavior is part of a pattern and history.
A property isn’t safe
Not paying income tax and property tax both end up usually the same way. The government will essentially embargo your ability to take out any further loans, issue a tax lien and the property could potentially switch ownership. Before you have been issued this kind of written formal warning, you should read about the IRS Tax Lien and Its Implication on your credit score and property. The problem can be solved by immediately paying back the tax debt that you owe. However it may be large and you may not be able to pay it back so quickly. You have 10 days to respond to the letter you receive from the IRS detailing how much money you owe. If this is not done a tax lien will be put on your home. Eventually, if you cannot pay the outstanding debt, the property will be seized and sold. The IRS will get the first cut of the profits for the debt outstanding but you will be left without a property.
Income tax is bothersome to many as it’s a tax on the amount of earnings you make during the year. Working hard and wanting to spend the money you earn on things that are important to you, is the number one reason why some people give the wrong information so they pay less. However eventually the government will find out and the IRS will get the final say on collecting the debt.