What if You Don't File Taxes This Year?

By
Services for Real Estate Pros with Anchor Tax Relief LLC 00100741-EA
What if you dont file taxes this year?
 
To many, the answer seems obvious, but I work with many Realtors who are seriously asking themselves this very question. Especially this year.
 
Why?
 
Because this spring agents are running crazy hard trying to find inventory to sell!
 
Time is precious. They don’t feel they have time to file a tax return.
 
Plus, this spring cash flow is especially tight for many agents.
 
Why?
 
Because they’re running crazy trying to find inventory - which means they don’t have closings in their sales funnel with which to pay potential income taxes!
 
Let me give it to you straight
 
Unfortunately the IRS doesn’t care: a deadline is a deadline.
 
Even you’re due a refund, there are seven strong reasons why you should file this year.
 
  1. If you don’t file you won’t get your refund. (And who doesn’t want more money in their bank account?)
  2. If you don’t file within three years you can even forfeit your refund completely
  3. If you’re self-employed, and your business had a net operating loss (NOL) in 2020, you’ll lose the opportunity to carry forward that NOL to future years when you may really need it to offset future profit and lower your taxes
  4. You lose refundable tax credits, like child tax credits, earned income credit, dependent care credit. It’s like leaving money on the table
  5. The IRS may file a substitute return - without you!  A “substitute” return never has as good of a bottom line as one you could have filed for yourself.
  6. If you don’t file, the audit clock never starts. Meaning you give the IRS an open window to cause problems in your life for a much longer period of time
  7. If you don’t file you may not be able to include your 2020 tax debt in potential bankruptcy relief
  8. If you don’t file you’ll have trouble getting a mortgage or a bank loan.
But what if you owe the IRS?
 
If you owe tax, there’s five even more powerful reasons to go ahead and file.
  1. If you don’t file, you are subject to a failure to file penalty of up to 5% per month on any unpaid balance. There’s also a penalty for failure to pay. This can mean hundreds or even thousands of dollars in penalties
  2. Not filing could result in jail time, plus another $25,000 fine
  3. Not filing could bring a notice a federal tax lien filed against you, which destroys your credit
  4. Not filing could mean a wage garnishment, which is never a good idea on payday
  5. Not filing means the IRS could levy your bank account. It’s never fun to go to the ATM machine and learn your bank account has been frozen with no money available
I’ve just given you 12 compelling reasons to get your tax return filed even if you feel you’re too busy, too broke, or too scared.
 
The fact is, we can help you resolve tax problems.
 
How to put your tax problem behind you
 
I provide IRS Representation for troubled taxpayers who fall behind filing their returns or paying their taxes due.
 
I’ve had good success
  • setting up affordable monthly payment plans, or
  • settling for less through an offer in compromise, or
  • helping people put the IRS on hold due to financial hardship in their lives.
I'm authorized by the federal government to represent taxpayers before the IRS in all 50 states. Visit my website to learn more. If you have questions or need help contact me at 757-346-1040 or jim@anchortaxrelief.com

Comments (1)

Deepak Chauhan
Versailles Property - Irvine, CA
Irvine, CA ... the place to be

I am in CA; one of my probate client's decedent did not file the taxes for 20+ years. The Personal Representative is a CPA ... the poor guy is in tears! You are right. The deadline is the deadline, whether you are alive or dead.

Mar 14, 2021 12:39 PM