15 Apr Why Do People Fall Behind with Taxes
People who don’t fall behind on their taxes would certainly ask this question. However, people who do fall back on their taxes usually know exactly why they did it. Whichever group you find yourself in, we wanted to give you a definitive answer to this question so everyone can understand why so many people fall behind on their taxes. By the end of this piece, you’ll know why it can easily happen to regular taxpayers as well. Let’s take a look.
Main Reasons Why People Fall Behind on Their Taxes
The IRS keeps numbers on how many people fall behind on their taxes, and according to their information, around 14 million Americans are falling behind with what they owe. In essence, they owed around $131 billion in penalties, back taxes, and interest in 2018, the last year that there is data for this.
As you can see, the people who owe the IRS are very numerous. So, why is this the case? Well, it naturally depends on each specific case.
The most common reason is that a person’s life has been very hectic or has even spiraled out of control. As you can agree, this is a very common occurrence, and it can easily happen to any of us. When that happens, a person can easily forget about a simple thing like paperwork and taxes. If not that, then they feel that they’ll have time to deal with it later on. As you know, this just turns into procrastination.
If not this, then unpredictable events may have happened – things like death in the family, divorce, illness, loss of a job, etc. When something like that happens, people will quickly forget or disregard taxes.
In the end, there is also the simple case that people don’t have money to pay their taxes. We all have to file taxes at a specific point in the year, and many people just don’t have enough money. We can all appreciate the fact that so many Americans are not able to have money saved that can then be used to pay taxes in April.
How to Fix the Issue
All in all, there are many reasons why people fall behind with their taxes. It’s part of life and most likely an inevitable occurrence. However, there are many things we all can do to avoid falling behind. It’s essential to do so because once you start falling behind with taxes, it’s easy to fall in a spiral that never ends.
What’s more, not paying taxes on time can often get you in trouble with the IRS. You have to do whatever you can to keep this from happening. This usually boils down to staying informed on how the process works and trying to motivate yourself to save money for taxes. You can also use software solutions, so you never forget how much you need to pay and when you need to pay it.
Ultimately, if you still end up having trouble with the IRS, that’s when it’s time to contact a tax resolution specialist. We at Golden Tax Relief focus on helping people get out of trouble with the IRS and learning how to stay safe so they never have to hear from them. Contact us to learn more!