Hey Abe, what happens if I don’t file my tax return?

Great question! One of the most common tax mistakes taxpayers make is failing to file their income tax return. It can lead to severe consequences. The IRS can file a substitute tax return on your behalf. When this happens, the IRS will generally mark you single with no dependents and include your full 1099-NEC income on the return without any deductions. After they file this substitute tax return, they can demand payment and if they are not paid, garnish your wages. Some states can also revoke your CDL if you are not filing and paying taxes in a timely manner.

Filing your taxes is the solution to this problem. If you need additional time to file, the IRS automatically grants you a six-month filing extension by filing form 4868 with the IRS by April 15th. If you can’t pay your taxes in full, there are options available like installment agreements. Make sure you file your tax return so the IRS does not file a substitute return on your behalf.