What Happens If You Can’t Pay Your Taxes?
What happens if you complete your tax return and find that you can’t pay the amount you owe? The IRS will attempt to collect, using measures such as interest charges on unpaid amounts or fines and jail time ( in extreme cases). This isn’t supposed to happen. You’re supposed to pay income taxes gradually throughout the year so that you won’t owe much in April or will even be entitled to a refund of overpaid taxes. Employees have income tax withheld from their paychecks. Self-employed taxpayers pay quarterly estimated taxes directly to the Internal Revenue Service (IRS). But sometimes your life situation changes, or an unusual one-time event occurs during the year. When you prepare your annual return and haven’t paid throughout the year, you may get an ugly surprise—you could owe hundreds or thousands of dollars that you didn’t expect and might not have the money to pay. What Happens If You Don’t File or Don’t Pay If you find yourself in trouble, you do not want to skip filing your tax return or fail to pay your taxes altogether. The government has the authority to forcibly seize your assets if you don’t try to make good on your income tax liability. In the most extreme situations, you may be subject to jail time. Filing Your Taxes Late If you are not going to be able to file your tax return by the deadline, you should file an extension of time by submitting Form 4868 to the IRS by the due date (typically April 15th). It is important to note that filing this form does not give you an extension on the time to pay your tax liability. You’re still expected to send any money you owe by the deadline. If you file your tax return late—or fail to file at all—you will be subject to failure-to-file penalties. These charges accrue on returns that have not been filed by the due date (or extended due date if you’ve filed a Form 4868). The charges accrue at a rate of 5% of the unpaid taxes for each month or part of a month that a tax return is late. The charges max out after five months, at which point the failure-to-file penalty is 25% of the unpaid tax liability. If your return is filed more than 60 days after the due date (or extended due date), the minimum failure-to-file penalty is $450 or 100% of your total tax liability, whichever is smaller. As you can see, filing late does not pay off, with or without an extension. Even if you do not have the funds to pay your outstanding tax liability by the due date, you should still file your tax return, so you don’t incur extra failure-to-file penalties on top of failure-to-pay penalties and interest. The Bottom Line Whatever you do, don’t ignore the problem. The government can forcibly seize your assets if you don’t try to make good on your income tax liability. The IRS can freeze your bank accounts, garnish your wages, seize physical assets, and place a lien on any assets you own, including your home. If you find you can’t pay what you owe, go ahead and file your return and pay what you can. Then work with the IRS, perhaps with the assistance of a tax professional, to formulate a plan for paying the balance of your tax bill over time.
What Is a Tax Return, and How Long Should You Keep It?
What Is a Tax Return? A tax return is a form or form filed with a tax authority that reports income, expenses, and other pertinent tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes. In most countries, tax returns must be filed annually for an individual or business with reportable income, including wages, interest, dividends, capital gains, or other profits. Understanding Tax Returns In the United States, tax returns are filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency (Massachusetts Department of Revenue, for example) containing information used to calculate taxes. Tax returns are generally prepared using forms prescribed by the IRS or other relevant authorities. In the U.S., individuals use variations of the Internal Revenue System’s Form 1040 to file federal income taxes. Corporations will use Form 1120 and partnerships will use Form 1065 to file their annual returns. A variety of 1099 forms are used to report income from non-employment-related sources. Application for automatic extension of time to file U.S. individual income tax return is through Form 4868. Typically, a tax return begins with the taxpayer providing personal information, which includes their filing status, and dependent information. What Documents Do I Need to Keep for My Tax Returns? For accurate tax filing, it’s crucial to retain various documents such as W-2s, 1099s, and receipts for deductions. These documents serve as evidence of your income, expenses, and eligibility for tax credits. The Sections of a Tax Return In general, tax returns have three major sections where you can report your income, and determine deductions and tax credits for which you are eligible: Income The income section of a tax return lists all sources of income. The most common method of reporting is a W-2 form. Wages, dividends, self-employment income, royalties, and, in many countries, capital gains must also be reported. Deductions Deductions decrease tax liability. Tax deductions vary considerably among jurisdictions, but typical examples include contributions to retirement savings plans, alimony paid, and interest deductions on some loans. For businesses, most expenses directly related to business operations are deductible. Taxpayers may itemize deductions or use the standard deduction for their filing status. Once the subtraction of all deductions is complete, the taxpayer can determine their tax rate on their adjusted gross income (AGI). Tax Credits Tax credits are amounts that offset tax liabilities or the taxes owed. Like deductions, these vary widely among jurisdictions. However, there are often credits attributed to the care of dependent children, individuals aged 65 or older, or those with permanent and total disability. Note that there may be income limitations or restrictions to these credits. After reporting income, deductions, and credits, the end of the return identifies the amount the taxpayer owes in taxes or the amount of tax overpayment. Overpaid taxes may be refunded or rolled into the next tax year. Taxpayers may remit payment as a single sum or schedule tax payments periodically. Similarly, most self-employed individuals may make advance payments every quarter to reduce their tax burden. The Bottom Line A tax return is a document filed with the tax authorities that reports income, expenses, and other relevant financial information to calculate and pay taxes. It is recommended to keep tax returns for at least three to seven years to comply with potential audit requirements and the period of limitations for tax amendments.
Manor Lakes
This area has an established reputation and a good sense of community. It is also an affordable area to buy property in. It has good transport options and is within a short drive of the Manor Lakes Shopping Centre and the Great Ocean Road. It has a train station that is close to Melbourne and Geelong. It is also near the Open Range Zoo and the Werribee Park and Mansion. The area is also close to the University of Melbourne campuses, and Monash University’s Vet school. Get to own this House and Land Package in Manor Lakes for only $703,135! Land Size: 350.00 sqm House Size: 157.25 sqm 4 Bedrooms 1 Living Room 2 Bathrooms 2 Cars for Garage Land Settlement: Q2-2025 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Manor Lakes“Lakeside and parks for kids”Wow amazing kids like splash water park and lake to walk around and greenery,looking forward to live there,just bought land there gonna built next year 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Cranbourne East
Looking for your dream home in vibrant Cranbourne East, Australia? Explore our stunning properties just 45 minutes from Melbourne CBD. Enjoy suburban tranquility, city convenience, nearby parks, shopping, schools, and easy access to highways and public transport. Get to own this House and Land Package in Cranbourne East for only $729,018 Land Size: 314.00 sqm House Size: 157.25 sqm 4 Bedrooms 1 Living Room 2 Bathrooms 2 Cars for Garage Land Settlement: Q2-2025 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Cranbourne East:“Great suburb”Clean and Green. Very safe. 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637For more updates, follow us on social media: Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Manor Lakes
Captures nature’s beauty with lush landscapes and well-kept parks, creating an enchanting atmosphere. It blends modern comforts with timeless charm, offering an ideal place to live. Strategically located, it provides easy access to essential facilities like schools and shopping centers, catering to different lifestyles. With a tight-knit community and regular social activities, residents enjoy a welcoming environment and lasting relationships. Choosing to reside in Manor Lakes ensures peace, convenience, and a fulfilling suburban lifestyle for everyone. Get to own this House and Land Package in Manor Lakes for only $612,200! Land Size: 263 sqm House Size: 134.88 sqm 4 Bedrooms 2 Bathrooms 1 Living Room 2 Car for Garage Land Settlement: Q2-2025 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Manor Lakes“Peaceful living in Melbourne’s west!!”Only 40 minutes from Melbourne CBD, close to shopping centres, schools, community centres, recreational facilities and a train station with public transport services, Manor Lakes has grown to become one of Melbourne’s most family-friendly livable suburbs. With generous sized homes, great for the growing families, a residential population of around 9,000, a lake, wetlands and over 3kms of walking and bike paths, with more to come 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Cranbourne East
Welcome to your dream home in the picturesque suburb of Cranbourne East! This enchanting locale offers not only convenient access to the city but also the natural beauty of serene creeks winding through its boundaries and the inviting pathways of the Federation Trail, perfect for cyclists and pedestrians alike. Beyond its scenic charm, Truganina features a vibrant array of shopping and dining options, catering to a wide range of tastes and preferences. Get to own this House and Land Package in Cranbourne East for only $729,018! Land Size: 314 sqm House Size: 157,25sqm 4 Bedrooms 2 Bathrooms 1 Living Room 2 Car for Garage Land Settlement: Q2 2025 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Cranbourne“Great for families, it’s well planned…” It’s a new suburb that is still growing, very well planned specifically the estates north of Leakes road, very well connected to the city 25min drive. Nice communities, people are friendly and feels safe. Plenty of parks, sports ovals, and cycling paths. Shops and retail within 10 minutes drive. It ticks all the boxes… 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Truganina
Enter your ideal home in the lovely suburb of Truganina! Truganina’s allure extends beyond its proximity to the city, to its natural beauty, with quiet rivers winding through its borders and the alluring pathways of the Federation Trail attracting both cyclists and pedestrians. Aside from its beautiful beauty, Truganina has a diverse assortment of retail and dining options to suit a variety of interests and preferences. Get to own this House and Land Package in Truganina for only $666,530! Land Size: 294 sqm House Size: 157.25 sqm 4 Bedrooms 2 Bathrooms 1 Living Room 2 Car for Garage Land Settlement: TITLED 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Truganina:“An excellent area in the west of Melbourne”I have been fortunate enough to live and work in Truganina for over 10 years. In this time I have watched the area grow and also have see all the development that has attracted so many people to this growing suburb. Truganina has so much to offer and is perfect for a range of demographic needs. The suburb caters for families, professionals, couples, retirees and has facilities for everyones needs. 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Wyndham Vale
Welcome to the delightful neighborhood of Wyndham Vale, where charm meets accessibility to create an idyllic living experience. Tucked away in a tranquil corner yet seamlessly connected to urban amenities, Wyndham Vale offers the perfect blend of suburban serenity and metropolitan convenience. With tree-lined streets, welcoming parks, and a warm community spirit, this suburb exudes a sense of tranquility and belonging. Its strategic location near major thoroughfares, public transportation hubs, and bustling shopping centers ensures that everything you need is just moments away. Discover the beauty of a place where convenience meets charm in Wyndham Vale, your gateway to a life of ease and enjoyment Get to own this House and Land Package in Wyndham Vale for only $645,225! Land Size: 313.75 sqm House Size: 169.08 sqm 4 Bedrooms 2 Bathrooms 1 Living Room 2 Car for Garage Land Settlement: June 2024 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Wyndham Vale“Nice, quite and wonderful neighbourhood”Its beautiful, still lot of construction is on way but closure to good school, train station and soon will be Westfield being built, 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Beveridge
Beveridge is a picturesque suburb that captures the essence of serene living amidst natural beauty. Nestled within lush landscapes, this charming community boasts well-maintained parks, tranquil walking trails, and stunning views that create a peaceful atmosphere. Combining modern amenities with a touch of traditional charm, Beveridge offers an ideal environment for families and individuals seeking a harmonious blend of convenience and natural splendor. Its strategic location ensures easy access to essential facilities like schools, shopping centers, and healthcare services, making it a perfect choice for those looking to enjoy a fulfilling suburban lifestyle Get to own this House and Land Package in Beveridge for only $634,900! Land Size: 302sqm House Size:174.84 sqm 4 Bedrooms 2 Bathrooms 1 Living Room 2 Car for Garage Land Settlement: Titled 𝗟𝗼𝗰𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝘁𝗼 Beveridge“Gorgeous Area and peaceful”Beveridge is a beautiful, peaceful pocket, Hidden off the highway. Mandalay Estate is worth checking out and worth living there. Very close knit, Access to gym, restaurant with a beautiful view and not to mention the lush green golf course. Gorgeous Estate, overall 5 stars 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀, 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹 𝘂𝘀: 1300 074 675 or send us a message on Whatsapp +61 488 859 637 For more updates, follow us on social media:Facebook: Simply WealthInstagram: @simplywealthgroupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrp
Energy-Efficient Homes Sell Faster
Despite inflated property prices, energy-efficient homes have attracted higher demand from middle-income earners, the property marketplace has said. Real estate listing company Domain released its Sustainability in Property 2024 report, which found that energy-efficient homes attract, on average, 16 per cent more listing views than homes that are not energy-efficient, despite eco-friendly homes costing more. Domain also said that the properties that were energy-efficient (including homes that were north-facing, had double-glazed glass, solar panels, and heat recovery ventilation) sold 4 per cent faster compared to non-energy-efficient homes. The report revealed that the national average cost of an energy-efficient house was 14.5 per cent (or $112,000) more expensive than non-energy-efficient homes and 11.7 per cent (or $70,000) more expensive for units. The price difference between energy-efficient homes and non-eco-friendly homes is more prevalent in Melbourne and Sydney, compared to the national average. Melbourne boasted a 28.8 per cent (or $241,750) price increase for energy-efficient homes, with Sydney noting a 23.1 per cent (or $330,250) increase in property prices. You may read the whole article here:https://bit.ly/3WZrg64
