By now, individuals across Atlanta should have started receiving tax documents in the mail. While you still have several weeks until the deadline to file your taxes, there are many people who are starting to think about the taxes they expect to get back or those they are going to be expected to pay.
If you are in a situation where you think you will end up having to pay more than you can afford, you could be in a very stressful situation. However, addressing the situation sooner, rather than later, can help you minimize the penalties and consequences of late or unpaid taxes.
If you do not file your on time or if you cannot pay them at the time of filing, you could wind up in a difficult position.
Most notably, you will have to deal with the financial repercussions of unpaid taxes. According to the IRS, this includes interest that compounds daily as well as a late-payment penalty, even if you filed your taxes on time.
However, there are ways to avoid this penalty if you show you had reasonable cause for late payments. The same goes for the penalties that are issued when you do not file taxes on time.
You may be scared that you could be facing jail time for non-payment of taxes. However, generally speaking, you will not be incarcerated for being unable to pay taxes. On the other hand, you can face criminal penalties if you lie on your returns or fail to file your taxes in the first place.
Dealing with potential tax issues before April can help you work them without the added pressure of the national deadline. Working to resolve these matters and understand your options with tax professionals and/or your attorney can help you minimize the financial penalties you could be facing and protect your rights as a taxpayer.