What Happens If I Don’t File My Taxes
It’s easy to put off filing your taxes. Life is jam packed with places to be and things to do. Finding time to organize your tax data and complete your income tax return may seem hard. We try to contend here, one of the famous question people of Pakistan usually ask; what happens if I don’t file my taxes ?
There are several ways to counter this human question; what happens if I don’t file my taxes ?
Firstly, if you’re like many people, it’s not terribly hard to find reasons to delay all kinds of things you need to do, including filing your taxes.
If you wait too long and miss the deadline, you may wonder if you should just skip filing altogether. We’ve all heard about someone who doesn’t file – ever. They go years without reporting income or e filing a income tax return, and they get away with it. If they can do it, why can’t you?
In this case, late really is better than never and filing, even if it’s a past the deadline, is the best course of action. Here’s a closer look at why you shouldn’t simply choose to withdraw.
Reasons# 1 on what happens if I don’t file my taxes
It’s harder than ever to get away without paying. The FBR may be large and sometimes slow, but the agency has one thing on its side; information. An incredible amount of information is fed into FBR computers every year, and there’s a good chance some of that information concerns you.
For example each year, your employer sends a copy of your Form to the FBR. The agency then waits, expecting a tax return from you based on your wages indicated on it.
Reason# 2 on what happens if I don’t file my taxes
In addition, banks, investment companies and businesses send Form to the FBR to report various types of income you received throughout the year. If you sell real estate, the FBR receives a form showing how much you received from the sale.
It may take the FBR some time to match your income up with your tax return, but eventually they will. If you didn’t file your return they’ll figure that out too. Falling behind on your taxes creates unnecessary stress.
If the FBR doesn’t hear from you once you’ve been contacted, things can get more serious. Your bank may send you a notice signifying your money has been seized by the FBR. The agency may also put a security interest against your property or enhance your wages significantly. And, during all this time, interest and penalties are piling up, meaning the FBR can take more of your money.
Getting behind on any bill is stressful. Falling behind on filing your tax return(s) and paying your tax bill(s) can feel even worse. Fortunately, its stress you can avoid.
With KLA Pakistan, you can file your tax return before it’s due and feel confident the professionals of KLA Pakistan helps you in finding all possible deductions and tax benefits. And later, if you believe you may have missed something, you can always amend your return.
Reason# 3 on what happens if I don’t file my taxes
Just remember you’re better off filing before the deadline so you can avoid paying penalties and interest that may come with filing late The longer you wait, the more serious the consequences.
Once the FBR determines you should have filed a return and didn’t, you’ll start hearing from them. You’ll likely receive a notification letter / notice from the FBR stating you will be penalized for not filing a return.
Reason# 4 on what happens if I don’t file my taxes
The FBR may also create a return for you. For example, if your employer reported wages, the FBR may create a tax return showing those wages. The catch? The FBR doesn’t know about any deductions or other tax benefits you may deserve. They typically only know about your income, and unless you straighten things out, you could end up paying a lot more in taxes than should.
Reason# 5 on What If I don’t owe or I might have a refund?
What If I don’t owe or I might have a refund? The FBR has firm guidelines in place indicating who needs to file a tax return. If your income falls at or above the minimum income requirement, you’ll need to file even if you think you won’t owe anything or receive a refund. You have three years from your filing deadline to file for a refund.
But, there’s more. Thanks to certain credits, such as the earned Income Tax Credit, you may be entitled to a refund even if you aren’t required to file. In this case, you won’t get the refund if you don’t submit a income tax return, therefore it may be in your best interest to do so. It’s better to file now, even if you can’t pay.
KLA Pakistan offers a variety of tax services – for employees, employers / businesses, companies and everyone in-between! Weather you would like one of our tax professionals to prepare your taxes and file you income tax return. KLA Pakistan has a solution of your every tax and finance related problems.
Get in touch today — Complex Issues, Specialist Advise!
FOR ALL YOUR TAX AND FINANCE RELATED NEEDS, CONSULT OUR PROFESSIONALS.
You might find these further articles useful:
Why you should Audit your Financial Statement
Advantages of Company Registration in Pakistan
Benefits of FBR NTN online Verification
If Your Goal Is To Get Biggest Refund Possible
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