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4 reasons people don’t file taxes

On Behalf of | Jan 9, 2023 | Tax Law

Once a year every year, most people have to file income taxes. However, many do not. As a result, many of these people will face penalties on top of the tax they owe. 

The big question is, why do so many people fail to file their taxes? There are many reasons that cause people to miss tax season. Here are a few of the common reasons:

1. They simply forget.

People are extremely busy and tax season is just one small part of their lives. Many people forget they have to file taxes once tax season rolls around. If this happens, the key is to file as soon as you remember and do not put it off. Handling taxes is a task most people dread, so this is the type of problem that can snowball into a bigger problem if no handled promptly.  

2. They’re confused about how to file.

There’s no doubt that filing taxes can be confusing, even for long-time taxpayers. The paperwork is often confusing and misleading and oftentimes tax rules and forms change each year. It doesn’t help that, depending on your job, income, living situation and many other factors, you could be paying different taxes than your neighbor.

3. They owe taxes but can’t afford to pay.

Sometimes people avoid filing taxes because they will have to pay and they cannot afford to do so. This only adds to the problem because they may then face penalties for not only failing to pay the taxes, but also failing to file on time. It is always best to file on time even a tax is owed that cannot be paid.  

4. They believe taxes are voluntary 

Unfortunately, many people believe that taxes are voluntary. In other words, they don’t have to pay taxes if they don’t want to. Despite the belief of some tax protestor groups, that’s not at all true. The courts have ruled may times that filing and paying tax as required by law is a legal duty and not merely voluntary.  

If you failed to file your taxes or have questions about your tax filing requirements, then you need to know more about your legal rights