TAX SEASON WILL BE HERE before you know it, and you may be wondering what could happen if you don’t file your 2019 returns by the April 15, 2020 deadline. For many people, filing taxes is a straightforward process. Perhaps, you have tax withheld from your paycheck and you file your taxes on your own. Or maybe you enlist a tax preparer to do it for you. However, tax-filing can get more complicated if you have side gigs or you’re self-employed.
Regardless of your financial situation, there are significant repercussions if you don’t file or pay taxes. With that in mind, here’s a primer on what happens if you don’t file taxes – and expert-backed strategies to ensure you stay on track to dodge expensive penalties.
Here are likely outcomes if you don’t pay your taxes:
- You’ll owe a debt that will keep growing.
- Your credit worthiness may take a hit.
- Your financial life may get uncomfortable.
- You’ll spend extra time and money cleaning up your mess.
You’ll Owe a Debt That Will Keep Growing
If you’ve decided you aren’t going to file this year because you’re tired of doing it, you may want to rethink that plan. In that scenario, you would have interest – and penalties for not paying your taxes. Some of those penalties include a penalty for “failure to file,” “failure to pay” and “failure to pay proper estimated tax.”