A guide to the benefits of filing your taxes and the steps to take if you have missed any deadlines, with the assistance of Net Profits Consulting.

Taxes can be stressful for many people, especially if you have a complex financial situation or you are not sure how to file your taxes correctly. However, filing your taxes is not only a legal obligation, but also a smart financial move that can save you money and avoid penalties. In this blog post, we will explain why you should file your taxes every year, what happens if you don’t, and how Net Profits Consulting can help you get caught up with your filings if you have fallen behind. Tax Filing Assistance

Filing your taxes has many benefits, such as:

• Claiming tax credits and deductions that can lower your tax bill or increase your refund.

• Receiving your stimulus payments or other benefits that are based on your income and tax status.

• Avoiding interest and penalties that can accrue if you owe taxes and don’t file on time.

• Protecting your identity and preventing tax fraud by filing before someone else does with your information.

• Keeping your tax records up to date and accurate for future reference or verification.

Even if you don’t owe any taxes or have a very low income, you should still file your taxes to claim any refunds or credits that you are eligible for. You may also need to file your taxes to qualify for certain programs or benefits, such as health insurance subsidies, student loans, or social security.

• If you don’t file your taxes by the deadline, you may face some serious consequences, such as:

• Losing your refund or credits if you don’t file within three years of the due date.

• Failure-to-file penalty of 5% of your unpaid taxes for each month or part of a month that your return is late, up to 25% of your total tax bill.

• Failure-to-pay penalty of 0.5% of your unpaid taxes for each month or part of a month that your payment is late, up to 25% of your total tax bill.

• Paying interest on your unpaid taxes and penalties, which accrues daily from the due date until you pay in full.

• Receiving a notice from the IRS that demands payment and may take collection actions, such as garnishing your wages, seizing your bank accounts, or placing a lien on your property.

• Having a negative impact on your credit score and your ability to borrow money or access financial services.

• Depending on the amount and the duration of your tax debt, you may also face criminal charges for tax evasion, which can result in fines, imprisonment, or both.

Case Study: The Cost of Not Filing Your Taxes

To illustrate the consequences of not filing your taxes, let’s look at a hypothetical case study of a taxpayer who failed to file and pay their taxes for the year 2019. We will assume that the taxpayer had a taxable income of $50,000, owed $10,000 in federal income tax, and did not file or pay their taxes by the deadline of April 15, 2020. We will also assume that the taxpayer did not request any extensions or relief from the IRS, and that the IRS did not take any collection actions against them until October 15, 2021. Here is how much the taxpayer would owe in penalties and interest as of October 15, 2021:

As you can see, the taxpayer would have to pay an additional $4,145 in penalties and interest, which is more than 40% of their original tax bill. This does not include any state or local taxes, fees, or charges that the taxpayer may also owe. Furthermore, the taxpayer would risk losing their refund or credits, facing collection actions, damaging their credit, and facing criminal charges if they continued to not file or pay their taxes.

How Net Profits Consulting Can Help You Get Caught Up With Your Filings

If you have missed any tax deadlines, don’t panic. You can still get caught up with your filings and reduce your penalties and interest by working with Net Profits Consulting, a professional and reliable tax service provider. Net Profits Consulting can help you by:

Filing your past due returns as soon as possible. Net Profits Consulting has the expertise and the tools to prepare and submit your returns online, accurately and efficiently. Net Profits Consulting can also handle any complex or special tax situations, such as self-employment, rental income, or foreign income.

Helping you pay as much as you can afford when you file your returns. Net Profits Consulting can advise you on the best payment methods and options for your situation, and help you avoid or minimize any fees or charges.

Assisting you with requesting a payment plan or an offer in compromise if you can’t pay your full tax bill. Net Profits Consulting can negotiate with the IRS on your behalf and help you secure a reasonable and affordable payment arrangement or settlement. Net Profits Consulting can also monitor your compliance and keep you updated on your progress.

Helping you with requesting a penalty abatement or a hardship extension if you have a reasonable cause or a financial hardship that prevented you from filing or paying your taxes on time. Net Profits Consulting can provide you with the documentation and the representation that you need to prove your case and obtain a waiver or a postponement of your penalties or payment deadline.

Filing your taxes is an important and beneficial part of your financial responsibility. By filing your taxes every year, you can take advantage of the tax credits and deductions that you are entitled to, receive your stimulus payments or other benefits, avoid interest and penalties, and protect your identity and credit. If you have missed any tax deadlines, you can still get caught up with your filings and reduce your tax debt by working with Net Profits Consulting, a professional and reliable tax service provider. Net Profits Consulting can help you by filing your past due returns, helping you pay as much as you can, assisting you with requesting a payment plan or an offer in compromise, and helping you with requesting a penalty abatement or a hardship extension. By working with Net Profits Consulting, you can resolve your tax issues and get back on track with your finances.