Taxes tend to be stressful for most people, and worry about getting them paid on time starts to arise. But what happens if you don't pay your taxes on time? Continue reading to find out.
Almost immediately, interest and penalties on your unpaid taxes begin. This can be anywhere between 0.5% and 25% interest on your unpaid taxes. As time goes on and you still haven't paid your taxes, you will receive notices in the mail informing you of the balance you have due.
If these two forms of contact have been unsuccessful, legal claims on properties and assets will begin to arrive. These are statements that the government has the rights to land and assets you own. These liens can also prevent you from receiving loans and get a job. The IRS could also send your account to a collection agency.
If it has been longer than three months, and you still haven't paid your taxes, your belongings can be rightfully sold at auction, and your passport could be restricted or revoked.
In order to keep these events from happening, it is important to pay your taxes and pay them on time. Our wonderful and knowledgeable team members at Hoods Tax & Accounting can assist you in understanding your taxes and ensuring they are paid on time.
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