Is it fine if I don’t pay my taxes?
You definitely should pay your taxes, not only because it is morally right to do so and it is required by law, but also because of the consequences you will face if you don’t do so. First, you will receive a letter from the IRS along with penalties for filing and paying late. The minimum late-filing penalty is $210, but if the tax owed is less than that amount, the fee is 100% of the unpaid tax. Otherwise, it can be 5% to 25% of the unpaid tax each month. The late-payment penalty is generally 0.5% to 25% of the unpaid tax per month. If you have a payment agreement with the IRS, it will be 0.25% per month instead. If both penalties apply to you, the maximum amount charged for both penalties is 5% per month. Over time, small penalties add up, especially with months of accrued interest.
Additionally, if you don’t pay your taxes, the IRS can file a tax lien against you, which could hurt your credit and means that they can seize your property or garnish your wages. In very serious cases, you can even go to jail for up to five years for tax evasion. As a result, it is best that you pay your taxes if you can to avoid the consequences, as well as to be a moral, law-abiding citizen. If you find that you can’t pay your taxes, you can request an extension, get a loan or pay with a credit card. You will also not have to pay penalties if you can prove that there was a reasonable case behind why you did not file or pay on time. Either way, you should still file on time and pay as much as you can by the tax deadline and keep paying the taxes even after you file.