| Don't Panic: So you know you owe taxes. You didn't | | | | your amount of gross income, even though you |
| file, thinking the IRS couldn't catch up. If you owe the | | | | actually paid $100,000 for that stock five years ago. |
| IRS money, they already know. And it won't be long | | | | The difference is not their problem. It's up to you to |
| before they find you! When you don't file a tax return, | | | | report that kind of information. And you can't if the IRS |
| the IRS will go ahead and file it for you. That's right! | | | | does a "Substitution For Return." |
| Money Out of Your Pocket: You're entitled to your | | | | Penalties and Fines: You thought it was over. No such |
| money. So you don't want the IRS to file your tax | | | | luck. After the IRS files the "Substitution For Return" |
| return for you. When the IRS files your taxes it's called | | | | they're still going to add Penalties for not filing. They |
| "Substitution For Return" (SFR). When they do this, | | | | also add Penalties for not paying, and Interest on both |
| they give you the bare minimum amount of deductions. | | | | the Taxes and the Penalties. Failure to File penalties |
| For instance, If you've never filed jointly, they'll consider | | | | are applied each month. Your Tax Debt will skyrocket |
| you "single." If you've filed as married-jointly, they'll | | | | out of control. |
| consider you "married filing separate." That's less | | | | Break the Habit: The lesson is simple. File your Tax |
| money in your pocket. | | | | Returns! A "Substitution For Return" will always be filed |
| ...And MORE Money Out Of Your Pocket: It doesn't | | | | in a way that is in the best interest for the IRS; not you. |
| end there. If you have any stock or real estate sales, | | | | And if you haven't filed yet, seek to file now. It's better |
| they'll be added to your income at gross sales. But | | | | late than never. It's not easy to file late, but you can |
| they won't consider how much you originally paid. Let's | | | | decrease or even eliminate your debt. |
| say you sell some stock for $10,000. They'll add that to | | | | |