What Can Happen when as You Fail to Pay Tax?
The legal requirement to pay tax is something to which the people of the country is bound. No one can evade from paying tax. The attempt to evade will lend anyone n hot soup. A certain percentage is set as tax and everyone must pay it by a certain time. The time limit is there and everyone must follow it. IRS often allow a few more deadlines and a certain percentage of the payable tax is levied as a fine for late tax filing. It is 5% of the payable amount as tax for every month. The amount does not exceed 25% of the payable tax. This penalty increases the amount and puts a heavier load on the tax payer. Filing tax at the right time is the key to avoid exceeding amount and growing pressure. But it is not the only thing that will happen to one on failing to fine tax. IRS also choose stringent actions against people who fail to file tax and try to avoid the organization.
Steps that IRS take
IRS start with levying penalty for being late. After that, the organization starts to choose ways to recover the amount. They often seize property and arrange the amount through wage garnishment. One can lose income due to these steps. One can even get jail time for unpaid payroll taxes. While you are legally bound to pay taxes, you also have the way to put forward your reason of inability to the organization. Professional tax relief firms provide the help of professionals in facing the IRS. The expertise and experience in this field helps to ensure penalty waiver as well as lower tax rates. Professional help can to stay away from getting into the jail or losing property and income.