IRS stated that if you want to your taxes done quickly, completing a paper return is not the way to go.
International Revenue Service Warning
IRS asks filers to abandon paper returns and submit them electronically to get their refunds faster. In the recent report of U.S Sun, IRS is also encouraging people to opt for direct deposit rather than a paper refund check when receiving their return. Filing a paper return this year, according to IRS Commissioner Chuck Rettig, will result in an extended refund delay.
According to the news announcement from the IRS, over 160 million 2021 tax returns are likely to file this year. If there are no complications, most taxpayers should receive their funds within 21 days after filing online. Based on the IRS figures, the average refund last year was $2,800.
What Happens if I Don’t File my Taxes?
According to the U.S Sun report, if you don’t submit your taxes on time, you could face fines of hundreds of dollars. For example, if you are assessed a “Failure to File Penalty,” the IRS will issue you a notification or a letter. Expect to pay a penalty of 5% o your unpaid taxes, which could increase to as much as 25% depending on how late you filed.
Furthermore, recently published report by U.S Sun, you’ll have to pay a $435 fine or 100% of the tax you owe if you file your return more than 60 days. It’s vital to keep in mind that the IRS adds interest on fines. Those under the age of 65 who earn less than $12,550 do not have to file taxes in 2021.