Thinking Not Filing Your Tax Return? Don’t.
April 15 is here.
If you didn’t file an extension, your return is due. Your payment is due whether you filed an extension or not.
If you’re our client, we’ve already filed your extension. You’re covered on filing. Just remember: an extension gives you more time to file. Not more time to pay.
Now let’s deal with the noise.
“Taxes are immoral.”
“Taxes are unconstitutional.”
“I don’t like how the government spends money.”
You’re allowed to have those views. The IRS and the courts have heard them all. They’ve rejected them. You will not be the test case that changes history.
The internet crowd adds a few classics:
“Income tax is voluntary.”
“The IRS isn’t real.”
“I never signed a contract.”
None of that works. It hasn’t worked in decades. If you try it, the result will be unpleasant and predictable.
Let’s focus on real questions.
Q: Derek, do I have to file?
A: If you owe nothing, you may not be required to file. Here’s the problem: how do you know you owe nothing?
You prepare the return. You calculate. You don’t guess.
Every year.
Q: If I prepare it and owe nothing, why file it?
A: Because filing starts the statute of limitations clock.
Generally, the IRS has three years to question your return. That clock doesn’t start until you file. No filing means no clock. That’s not a position you want to be in.
Also, refundable credits and stimulus payments are based on filed returns. No return can mean no check.
Q: What if I owe but can’t pay? Why admit it?
A: Because math wins. Failure-to-pay penalties are typically 0.5 percent per month, up to 25 percent. Failure-to-file penalties are generally 5 percent per month, up to 25 percent.
That’s ten times worse.
If you can’t pay, file anyway. It reduces penalties and starts the clock.
Q: What if I just don’t file at all?
A: First, letters. Then the IRS files a Substitute for Return using only W-2s and 1099s. No business deductions. No itemized deductions. No credits. The bill is almost always higher than warranted.
Collections follow. Levies. Garnishments. Liens. In extreme cases, criminal charges.
You don’t want that story attached to your name.
Q: What if I’m owed a refund?
A: You usually have three years from the original due date to claim it. After that, it’s gone. Permanently.
If you’re wondering whether you should file, stop wondering.
File it. Start the clock. Move on with your life.
Start your tax savvy journey
Whether you’re ready to get started or have questions about our firm, we’re here to help.
Call Derek: (432) 687-0243
Email Derek: hello@basinwealth.com
