The IRS can impose penalties, prepare alternative forms, and initiate collection in case you fail to file the taxes. Although the IRS does not directly disclose the unpaid taxes to the credit bureaus, the effects may still impact negatively on your credit indirectly. Indicatively, when a federal tax lien is registered (though current day tax liens are no longer reported to credit agencies), it may make it difficult to secure a loan, mortgage or even business funding. Also, it may cut your income through wage garnishment or levies which may interfere with financial planning. Submitting your taxes even after the deadline is due is a way to bring back sanity and safeguard your future financial standing.

Visit us: https://accountinglads.com/what-happens-if-you-dont-file-taxes/