So you feel you are exempt from filing your taxes? There is absolutely NO excuse to not file IRS taxes! It might be because you forgot, or maybe you were physically hindered from filing. Or maybe you just didn't feel like filing, as you thought you could fall through the cracks. Nevertheless, the Internal Revenue Service doesn't actually look into why you didn't file. They only care that you didn't. Therefore, you have just given them the go-ahead to come a-knocking. If you fail to file, you must be prepared and know exactly what to expect.

To steer clear of tax filing penalty fees, you need to file your federal income taxes. If you need it, don't think twice about obtaining experienced federal income tax filing assistance. Otherwise, you will wind up having a debt with the Internal Revenue Service. IRS penalty fees are incredible. Paying your taxes every April 15th is already a pain, but the tremendous debt you'll have with the IRS if you do not use tax filing help will make that amount impossible.

Tax Filing Penalty Fees: You will immediately have penalties as soon as the Internal Revenue Service finds out you have failed to file. The penalty for Failure to File is 5% of the tax debt per month, with a max of twenty-five percent. They'll probably also hit you with a Failure to Pay penalty, which is 1% of your debt every month. There is no maximum on the Failure to Pay penalty, so the more time that passes, the bigger your tax debt will be.

Interest on Your Tax Debt Itself: As though you weren't suffering enough with penalty fees accruing, you've also got to consider the interest charges. Right now, the interest rate is sitting at 6% of the debt for each year. Keep in mind, though, that interest compounds everyday, on top of penalties, so the yearly interest rate is technically much greater than that. Keeping that in mind, if your tax debt is $10k and 12 months pass, your total tax debt is going to actually be $15k. Let 3 years go by, and your debt is going to be approximately $35K. And that is only from penalties and interest.

Jailhouse Rock: On top of that, the IRS can legally jail you for not filing. The largest collection agency on earth is the Internal Revenue Service. If they want their money, they are going to get it.. The fact that you neglected to file, for whatever reason, shows the IRS that you could not care less. That accomplishes nothing but to make their blood boil and give them the go-ahead to execute collections to the maximum allowed by law. And so you're going to find yourself locked up.

What Can You Do? The most effective way to keep away from these scenarios is to file by the due date, each April 15, even if you can't afford to pay the money you owe. You can obviously call the IRS and set up some kind of payment agreement. It's much better than letting the penalties and interest accumulate merely because you didn't file.

Too Late? If your debt has already taken a turn for the worse due to penalty fees and interest, and you know the reason you failed to file was because of external factors (illness of a family member, death of a family member, etc.), then a penalty abatement may be an option. Find out your options to getting your problem taken care of by contacting a reliable tax expert. Even if you aren't eligible for a penalty abatement, you could qualify for something else that can put you in a much better financial position than what you are already in.

Choosing the right federal tax filing assistance is fairly simple. To make sure you have the best federal income tax filing help company, research them with the Better Business Bureau (BBB.org) and be certain they possess a rating of A or better.