What Happens When You Do Not Pay Your Taxes?

By: TSPadmin

The Internal Revenue System, or IRS, is the federal agency tasked with tax collection on a national level. By that, they certainly have the policies and answers to all your queries with regards to taxation; they were created for that.

There are several types of taxes that the government collects from its citizenry. Unlike the Roman dynasty or the pharaonic Egypt eras, capitalist democracies around the world adopt a more comprehensive system of taxation, including the US of A.

In a sense, the government has more means of earning money today than it did a hundred years ago. From individuals, to business, to corporations – large or larger, they are all covered by the IRS.

There is even a newer tax that is currently in vogue today due to the presence and persistence of biological virus (as opposed to software or computer virus). This is in reference to the Internet Sales Tax, which given debated and ruled upon in 2018 only.

Due to the complexity of this topic and the vastness of the number of entities that can get involved, in all intents and purposes, we will focus on only one entity, you, the individual. And what of you? You are an employee and you have your Income Tax Return; that will be the core.

As the title implies, we will delve into the policies the government has put up with respect to this topic. We will also see if the people at the IRS have fangs that suck our blood dry and walk thereafter like zombies in the movies.

To do that, we need to ask first what the IRS wants us to do. File your income tax return; that is what they want us all to do. File it. More so than anything else, file your income tax. For reason only you would know or understand that you do not pay your tax despite having filed it completely and correctly.

No matter what your situation, whether it is your first time you filed and not paid, or filed returns for the past ten years and never ever paid; here is a list of possible actions the IRS will do on you:

  • Selling your house? IRS will take first what you owe, and the rest is yours, if there is a dime left.
  • You have a bank account? IRS will put a lien on it.
  • Your take home pay will get lesser.
  • Do you drive? Look at your driver license.
  • Want to go to Mexico? Check your passport.
  • Trouble will come inside your credit card.

Imagine losing everything you worked hard for, the years of toil to get to where you are, the house or apartment, the car, the fifty-inch TV; not to mention, your dignity and character. You will lose them all with just one silly decision.

Are these real? Could this really happen to me? It is real and it could happen to you if you defy or disregard the IRS. The people at the federal government are human beings, they have emotions, they are capable of understanding. Of course, they are not blood-sucking vampires.

They can do that because they are the federal government; they are the ones that issued you your Social Security card and number. You passed the test and they issued you your driver’s license. They gave you your passport because you want to go to Mexico.

So, the best possible option for you is to reach out and talk to an IRS representative to come up with an amenable solution to your problem. File your return and talk to them if you really are not capable of paying yet.

You can file your return by yourself, but it be a bit daunting especially if it is your first time. An option is to approach a tax professional – bookkeeper or accountant – which can surely empty your pocket if you don’t have much to spare in terms of cash.

Now it is the devil or the deep blue for you. Deal with the devil or swim the ocean; either way, it is not nice. Luckily, you don’t have to choose any of the two. A third option has taken shape right in front of you, as if by magic, and it smiles at you. It’s the IRS.

The IRS has a free online tool for tax filing if it is up your alley or they can refer you to groups that can do the return completely as long as you are a senior citizen or has an annual income not more than US$ 55,000.

Check the website or go to the nearest IRS office for a complete and thorough information with regards to taxation. If assistance is needed you may also approach a tax professional like Jackson Hewitt.

Leave a Comment