One of the most common tax problem taxpayers experience is probably one of the easiest tax issues to fix. Many people because of many different reasons fail to file their tax returns, either on time or not at all. You should understand that just because the IRS does not contact you right away, that does not mean they are not aware of your filing status. In fact, it may take more than a year for the Internal Revenue Service to contact you about unfiled tax return on a given year.

Many taxpayers mistakenly assume that not filing a tax return will relieve them of their tax liabilities. Nothing could be further from the truth. In fact, if you have not filed a return in a given year, you would be wise to do so right away. The most important thing at this point would be to minimize penalties, interest in various fees that accumulate on your debt. Perhaps you do not have the money to pay the Internal Revenue Service now. That should not preclude you from filing a return. The inability to pay is no excuse for an unfiled tax return. Tax payments and perhaps installment payments can be set up later. But, you should still file your return.

Failing to file a return has significant consequences, including jeopardizing your future credit status with many lenders. If the IRS files a notice of federal tax liens, you will not be able to receive student loans, refinance your home or many other accesses to credit until your delinquent taxes are paid in full.

The Internal Revenue Service will seemingly playing nice at first. However, the IRS incrementally steps up the aggressive measures in pursuing tax debt. Filing and paying your tax is your responsibility and is federal law. The IRS has a wide range of civil and criminal penalties available that they can impose on persons who don’t file returns. If you haven’t unfiled return, you can be sure that the Internal Revenue Service will be in touch. It is only a matter of time. Contacting the IRS assessed possible before they contact you will allow you to solve your tax issues rather easily