It’s around this time of year that people are getting set to pay their tax bills, well some of them are. Others leave it late or amazingly do not even bother filing their taxes at all, and we’re talking millions of people here!
That’s staggering considering the various penalties that come with filing late or not at all, but it happens every year. So,If you’re interested to see some of the most common reasons why people don’t file, and whether they’re valid or not read on.
Sheer Laziness
Laziness pure and simple is probably the biggest reason why people file late or not at all. This is not hard to understand in some ways because you don’t get lots of reminder and phone calls should you fall behind like you do with many other consumer debts, which means that people don’t get a push to act.
On the other hand, it is sheer stupidity because the IRS will discover non-payment pretty quickly and the consequences can be dire. Simply being too lazy to file holds no water with them and that’s why you should always file and pay promptly.
Not Having the Money
Another common reason why people file late or avoid doing so altogether is that they simply do not have the money to cover their tax bill. They foolishly hope that by delaying, they can get away with paying a bit longer until their problems are resolved.
That doesn’t work. The IRS expects you to save for your tax bill and they expect you to file when you’re supposed to. If you don’t, they will come after you, and you will be charged interest and late payment fees.
If you really can’t pay, you should still file by the deadline and perhaps talk to a tax attorney to see if you can work out a more affordable payment plan. If you hide your head in the sand, the situation will only escalate, and you’ll be in an even bigger financial hole at the end of the day.
Forgetfulness
It’s amazing how many people have their tax preparer or accounted fill in their tax returns only to forger the filing part. It’s kinda understandable when people are so busy, but it holds very little truck with the IRS who say that forgetting is no excuse for a late return or non-filing. You can expect no leniency if you forget, so make a note on your calendar or set your phone to alert you a few days before.
Confusion
Many people simply do not understand the filing process or how they should complete their taxes properly, and this leads to them getting into difficulty and ending up filing late. Unfortunately, the IRS is not very understanding of this reason either, and you can expect to have penalties thrown at you if this is your excuse.
Bereavement
Another common and more understandable reason for a late tax return is the death of a taxpayer or a member of their immediate family, In such a situation, taxes are usually the last thing on a person’s mind, so the IRS is far more likely to offer an exemption once proof is provided.
It really is just best to file your taxes on time and minimize your dealings with the IRS because they are pretty unforgiving in most cases.