Frequently Asked Questions
01 Why is filing taxes important?
Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes. In most countries, tax returns must be filed annually for an individual or business with reportable income, including wages, interest, dividends, capital gains, or other profits.
02 Why do so many people fall behind on their taxes?
​
People get behind on their taxes for many reasons, but whatever the reason, if you fall behind on your taxes for reasons other than financial hardship, it's important to reassess your tax payment plans. The price of neglect is far too high, and the IRS will come after you and won’t stop until you pay up. Most people who are self-employed are responsible for paying their own taxes on a quarterly basis, depending on their income and estimated tax payments. Since they are self-employed, they do not have an employer to withhold taxes from their paycheck—that's usually an effective backstop for people who might otherwise forget to file their taxes. Some other reasons people may owe the IRS are linked to what’s going on in their personal lives. A taxpayer may have a family crisis or an emergency that occurs around tax season that prevents them from filing a tax return on time or from paying the tax bill in full. Other taxpayers may simply misunderstand the tax laws and take exemptions, deductions, and credits that they are not qualified to claim. In this situation, the IRS will usually contact the taxpayer and inform them of the reporting error. The taxpayer is then required to validate the exemption, deduction, or credit taken. Without proof, the IRS will correct the taxpayer's tax return and the taxpayer may incur a hefty tax liability plus a penalty and interest. If the agency is unable to get you to voluntarily satisfy your tax debt, it may take collection actions. It has the authority to put a lien on your house and put a garnishment on your wages. It will also tack on penalties and interest until your debt is paid. To avoid owing the IRS, focus on being self-motivated and educate yourself on your tax reporting and payment obligations. If you are ever unsure about your tax reporting and payment obligations, hire a tax attorney or a professional tax preparer like Armour Taxes Plus. Above all, always be alert, and always file your taxes on time, no matter what you may owe.
03 How to file for a tax extension
​
If you need more time to prepare your tax return—whether you are busy with school, a family emergency, or are simply disorganized so you can request an extension, but to get one is not complicated. However, even if you get an extension to file your paperwork, you must still make your tax payments on time. IRS e-file is the IRS electronic filing program, which allows you to send tax forms, including Form 4868, directly to IRS computers. You can get an automatic extension to file your tax return by filing Form 4868 electronically through IRS e-file on your own, using free or commercial tax software, or with the help of a tax professional who uses e-file.
​
