Tax filing is a hassle. It’s not fun. And it’s not easy. There are so many forms to fill out, and so many rules to follow. But filing your taxes is important for a number of reasons:
-It ensures that you pay the right amount of tax each year.
-It keeps the IRS on your side. The best way to avoid an audit or other problems with the IRS is by filing a complete and accurate return every year. The biggest reason to file your taxes is to get your refund. If you fail to file, you won’t be able to collect money that you are entitled to.
However, there are other good reasons to file your taxes even if you don’t owe any money.
If you have deductions or credits that can help offset your tax liability or reduce how much in taxes you pay, it makes sense to file even if you aren’t required to do so by law.
If you qualify for the Earned Income Tax Credit (EITC), filing is important because this credit may offset the amount of income tax due or even make it possible for a taxpayer with no tax liability to receive a refund from the IRS.
There are also some states where taxpayers are eligible for additional refunds if they claim an exemption on their federal return. In some cases, taxpayers may be eligible for refunds even if they didn’t owe any taxes at all!
-It helps reduce your stress level. Filing your taxes yourself can be stressful because there are always last-minute deadlines — if you miss them, you could face late-filing penalties and interest charges on top of the regular taxes due on your income.
-Filing your taxes can help you get tax refunds (if you overpaid during the year), or help limit how much you owe (if you underpaid during the year).
The first thing you need to know is that filing a tax return is not optional. The Internal Revenue Service uses various methods to reach out to taxpayers who don’t file on their own, but if you don’t file, the agency will eventually come after you.
The penalties for not filing a tax return can be severe. If you fail to file for two years in a row, the IRS can charge you interest and penalties on your taxes due. And if you’ve never filed before, it’s likely that the IRS will begin an audit of your income at some point in the future.
In addition to paying interest and penalties on what you owe, there’s also a good chance that any refund due will be withheld until all outstanding amounts are paid off — including interest charges and late fees.
If you wait too long and eventually receive a bill from the IRS for back taxes owed on previous years’ returns. You can contact for more information.
