As Americans struggle to make ends meet in a sluggish economy, many will be tempted to dip into the money that they should pay to Uncle Sam. If people are forced to choose between paying for gas, food, the house payment or the IRS…they’ll pay for the necessities and deal with the IRS later.
We can expect to see increased incidences of:
1. Employees who substantially increase the number of exemptions they are claiming at work, so they can get more take-home pay.
2. Self employed taxpayers who stop making their required estimated tax payments…as well as not filing their 1040’s.
3. Businesses owners not making their payroll tax deposits on time or at all, and instead use the payroll tax money to keep their businesses open.
4. Many who do not file their 2008 tax returns – since they owe money.
However, not paying the IRS what is owed, and especially not filing tax returns at all, is a choice that can have dire consequences. Most people don’t realize the power of the IRS to get what is owed to them. Unlike credit card companies or mortgage companies who have limited power in trying to collect an overdue debt, The IRS can take your wages, 401(k), social security, seize your property, put a lien on your house, or even send you to jail. Plus, they can shut a business down in a heartbeat.
If you need assistance taking care of your tax issue, contact us to schedule a free, confidential consultation.
