The tax season is here and you will be in trouble if you don’t file your tax return on time. Filing taxes is easy for those people that have a straightforward salary but it becomes difficult for those that are earning with other side gigs or those that are self-employed. In such a case, these persons can hire some tax experts to help them file their tax returns.
But if you are thinking that you can escape without paying your taxes then let me tell you, messing with taxes would have serious repercussions for you. Following are the consequences for not paying taxes:
1. Penalty
You can mess with the taxes by not filing the return or you can mess by not paying the taxes. Either kind results in penalties. If you did not file the return, you would get a penalty of your tax amount but if you were unable to pay than with the penalty, you will have to pay the interest on the tax owed amount.
2. Notices from HMRC
It is widely accepted that no one wants to receive notices from the HM Revenue and Custom. If you don’t pay or file for tax, you will get direct mail from the HMRC. Most of the people that receive such kinds of notices panic and deliberately avoid the answer to these emails. The best solution is not to ignore those notices rather you must contact that department and need to work out a plan to pay your outstanding taxes in installments.
3. Cancel Your Refund
But if you are not afraid of HMRC notices then let me tell you what they can do. They will forfeit your refund. It is sensible that unless and until you pay them their money, they will not pay you your money. They will hold onto that money simply as long as you don’t pay the taxes.
4. Cancel your Social Security
According to the experts, HMRC can stop your social security by requesting this to the concerned departments. While they cannot snatch your freedom to earn in the job market or give up social security, they can cancel your social security.
5. Lien Case
If you still don’t pay your taxes then HMRC will send you a federal tax lien. It is a claim to your property against your unpaid taxes.
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