What Happens if I Don't Pay My Taxes in the U.S.?

September 23, 2022

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When you fall behind on your tax payments, you're keeping the State from acquiring the necessary income to cover the expenses demanded for the country's administration. You'll also be going against the tax laws that every person inside the country must adhere to, regardless of their residency status (including immigrants with an illegal status). Every person living inside the U.S. must file their taxes if they have generated income inside the country. The Internal Revenue Service (IRS) deems them as taxpayers, so they're obligated to fulfill their tax-related responsibilities.

Woman Worry Cuz She Doesn't Pay Her Taxes in the U.S.
As such, many people may wonder: what happens if I don't pay my taxes in the U.S.? This question has a simple answer, given that any person who spends over 30 days in the same home address and generates income is considered a taxpayer. If you don't follow your tax-related obligations, you can face fines and penalties for tax evasion.

Today, we will provide an in-depth description of the consequences that come with tax evasion in the U.S.


What Happens if I Don't File My Taxes?

Every year, the IRS releases the tax season dates that will run for over three months of the year. In addition, it offers extensions to taxpayers who are unable to meet their tax obligations for whatever reason. These people are invited to ask for a tax extension and are given a chance to file their tax returns. However, if you don't file your taxes during the extension period, you may get penalties spanning 5% to 25% of your unpaid taxes for each month you fall behind on payments.

Likewise, you'll be fined for failing to file your taxes and get a different penalty for failing to make your tax payments in the same month. This means that the Failure to File Penalty will join your Failure to Pay Penalty, marking 5% for each month or part of a month the tax remains unpaid. Once you go more than five (05) months without filing and paying your taxes, the amount of money on your penalty will stay at 25% of the unpaid taxes since the expiration date. These penalties may also increase with the interests added to the overdue fine, which will also be accumulated on a monthly bases until you pay the indebted amount in full.

Couple Worry Cuz They Don't Pay Theirs Taxes in the U.S.

What Happens if I Can't Pay My Taxes?

If you're financially unable to meet your tax obligations, the IRS offers a payment plan in which, after confirming that you qualify, you may settle a deadline to issue your payments at the amount corresponding to your expired taxes. You must apply for the plan while forwarding the taxes you've filed online. If you haven't filed these taxes, you need to do so in order to apply for the payment plan.

There are two plans that allow you to pay your taxes:
  • Short-term payment plan: you commit to paying all your indebted taxes, penalties, and interests within a timeframe of 120 days.

  • Long-term payment plan (in installments): you commit to making monthly payments to cover your indebted taxes, penalties, and combined interests in a timeframe that surpasses the 120-day mark. This plan sets a fixed rate that the indebted taxpayer must pay depending on their income.

If you don't know how to file your taxes in order to apply for a payment plan, we recommend getting specialized assistance from a certified tax preparer. This will ensure a simple, easy-to-follow process when it comes to filing all your tax information, as these forms can be difficult to complete if you're not well-versed in the English language.

Avoid Getting Penalties with the Assistance of Our Certified Tax Preparers

United Tax & Accounting Group has the most knowledgeable team of certified tax preparers to help you or your company in the U.S. once the tax season rolls around. We also count on the latest technology and a specialized team that's ready to bring the best accounting and tax services to keep you up to date with your company's administrative, accounting, and tax records.

Woman Needs Help Cuz She Doesn't Know How to Pay Her Taxes in the U.S.
You can count on our tax preparers to help you avoid penalties and fines while filing your taxes, ensuring that the end result is free of errors or omissions. If you can't file your taxes on time, don't hesitate to contact our tax preparation services to help you understand all the tax-related steps that will keep you on schedule with your payments.

If you're interested in our tax preparation services, you can count on us! Just call (786) 431-5576 or fill out the contact form on our website to learn more about our professional team. You can also send your questions via our online chat, and we'll clear any doubt about the process, including how to go about paying your expired taxes. We'll be happy to provide the assistance you and your company need.

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