Every year, American citizens in every state, including California, are legally required to submit their tax returns to both state and federal governments. When taxes are due, a time known as tax season, many people become frustrated over the complexities of the American taxpayer system. It can be tempting to just throw your hands up and forget about the whole thing. However, failing to file your tax returns may result in serious penalties. Even so, every year, people in California fail or forget to file their taxes.
While the exact number of people who fail to file their taxes in California changes from year to year, it is safe to say that it is a relatively common offense. Many people do not file their taxes on time, or they do not file them at all. There are multiple reasons that people neglect their taxes. Common reasons include simply forgetting about taxes or failing to understand that they are legally required. Other people may have more nefarious reasons for forging their taxes. In any case, you might need legal representation if you are penalized for failing to file your California taxes.
For most people, failure to file their taxes is a relatively small offense. While not filing your taxes does not feel like a big deal, it can lead to costly consequences. Contact our California tax return attorneys for help. Call the NewPoint Law Group, LLP at 800-358-0305 to schedule a legal consultation with our team.
How Often Do People Not File Their Taxes in California?
Failing or forgetting to file taxes is so common that the state and federal governments often allow people to file for extensions to avoid late penalties. So many people do not file taxes that criminally punishing all of them would be difficult, if not impossible. However, if the government discovers that you have not paid your taxes, they could come after you. In most cases, the government simply wants you to pay the money you owe. If you can do that, you are unlikely to face serious consequences like jail time.
However, if you repeatedly fail to file taxes for many years, your situation may become more dire. The more tax returns you fail to file, the greater your penalties might be. You could also be charged with crimes like tax evasion that come with additional criminal consequences.
Failing to file your tax returns once or twice is a relatively minor offense. However, if left unchecked, it will come back to haunt you in a very expensive way in the future. Call our Sacramento tax return attorneys for help with your tax situation.
Reasons People Fail to File Taxes in California
There are many common reasons people fail to file their taxes. Perhaps one of the most common reasons is because people fail to understand how important their taxes are. For people who have never had to file before, taxes are a new experience. They may shrug off the responsibility of doing their taxes because it is confusing and frustrating. While doing your taxes can be difficult, our team of California tax return attorneys is here to help.
People also simply forget to file their taxes. Every year, taxes are due sometime around April. However, many people lead very busy, hectic lives, and their tax returns accidentally slip through the cracks. They may not realize they forgot to pay their taxes until long after the due date.
Other people fail to file their tax returns on purpose. These people often want to cheat the system by not paying their taxes and hoping nobody notices. However, if the government finds out you failed to file taxes and believe you did so intentionally, you could be criminally charged.
If your failure to file taxes were an honest mistake or due to a lack of knowledge, you would probably avoid criminal charges. However, you must still pay the money you owe in addition to penalty fees. Our Elk Grove, CA tax return lawyers can help you sort through the mess and straighten out your tax situation.
Consequences for Not Filing Taxes in California
Failing to file your tax returns will come with some costly penalties. The extent of your penalties will depend on why you did not file your taxes. For honest mistakes, your penalty will be smaller and more manageable. However, if your failure was a result of willful neglect, you may face higher penalties. Additionally, the more money you owe in taxes, the greater your penalties may be. Our California tax return lawyers will guide you through this complicated problem.
A taxpayer who does not file a tax return in California will have to pay a penalty fee of 5% of the total amount due for each month the payments are past due. However, the penalty will be capped at 25% of the total payment due. For example, if you owe $1,000, you must pay a fee of $50 for each month your taxes are unpaid. However, you will not have to pay a penalty any higher than $250.
If your failure to pay were deliberate or part of a fraud scheme, your penalties would increase. You would have to pay a penalty fee of 15% of the total for each month your taxes are unpaid. The penalty in this situation would be capped at 75%. So, if you owe $1,000, you must pay a penalty of $150 for each month your taxes are late, but no more than $750 in penalties.
If you owe a lot of money in taxes, your fees may be very high. Contact our Vacaville tax lawyers for help resolving your tax problems.
Contact Our California Tax Return Attorneys
If you failed to file your tax returns in California this past year or in a prior year, you are still on the hook for your taxes. Our California tax return attorneys can help you determine how much money you owe and how you can pay it. Call the NewPoint Law Group, LLP at 800-358-0305 to schedule a legal consultation.