Legal Advice

Reasons to File Your Tax Return Even If You Can’t Pay

The bottom of your tax returns has reached its final page and the amount owing is greater than your checkbook balance.

  • Is it too afraid to file the return for fear of being sued?

  • Are you afraid of even trying to calculate how much debt you owe? Do you think a delay in filing is a good idea?

  • Do you fear that you will be wearing a sign around your neck?

Easy Tax Payment Plans Are Available

There is no need to enter into an installment agreement. Send money each month to help retire the tax.

On the check, please include your name, social security number, and the tax year to which you would like the money credited.

If you owe less than $50,000 and feel the need to have a formal agreement with the feds, you can create a payment plan online.

Failure to File a Return Is Subject to Separate Penalties

You could be subject to a separate penalty if you don’t file your tax return or if you don’t receive an extension.

This is in addition to the penalty for failing to pay as required.

It’s costly to lose sight.

Filing Returns Starts the Clock Ticking for Escape Options

A collection statute makes taxes impossible to collect. The discharge of taxes at a certain age is possible under bankruptcy laws.

Both escape routes from delinquent taxes begin counting with the filing of your tax returns. (In other words, the statute begins with assessment. However, filing the return is a self-assessment.

This article was written by Alla Tenina. Alla is a top tax resolution attorney in Sherman Oaks CA, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and tax resolution Orange County. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.