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3 common reasons people end up with tax trouble

On Behalf of | Apr 27, 2023 | Tax Law

Every year, people are supposed to pay their income taxes and property taxes. Most people do this without an issue, but there are those who miss payments or fail to make them entirely. This can lead to confrontations with the IRS.

It can help to consider why people don’t pay their taxes, both to help you avoid this situation and so that you can consider your options if this does happen to you. There are always options when working with the IRS. You just need to know what steps to take.

1. They get too busy 

First and foremost, people sometimes just feel like they are too busy. They miss deadlines, overlook paperwork or simply forget to send in the payments that are required. They certainly don’t want to miss the payments and they’re not trying to get out of it. They’re just very busy and paying taxes isn’t a priority.

2. They’re doing it intentionally 

In some cases, people do fail to pay their taxes intentionally. They may be against taxes on principle, or they may be simply trying to commit fraud. But these cases are rather rare, at least compared to those who are making innocent mistakes or things of this nature.

3. They made a mistake 

Finally, some people obviously just make an error and believe they’ve paid the proper amount. For instance, maybe they enter their income numbers incorrectly. They simply read the wrong number on the paperwork. Most people who are doing their taxes have no formal training, so little mistakes like this are very common.

If you do find yourself in trouble with the IRS, remember that mistakes and oversight are more common than fraud. The IRS simply wants to get things straightened out, and you need to know what legal steps you can take to do so.