What happens if you don't file taxes?
For those of you who haven't filed your taxes, you could face penalties.
Tax professionals say not filing taxes at all is not an option if you ever want to buy a house or a new car.
They say tax return history is usually one of the things you'll be asked for when making a large purchase.
Tracey Wooden has been an attorney and Certified Public Accountant for decades and warns that not filing your taxes could prevent banks from approving loans for a house or car.
Banks look through your paperwork to make sure you qualify for the loan.
“Earning capacity your ability to repay which is basically what they are looking at,” Tracy Wooden said.
According to Wooden, the loan application process includes your tax returns, and if there is something preventing you from getting approved there are some options.
“Go through the process to get the lien taxes paid,” Wooden said. “You can do that by hiring a professional to get the date settled for a fraction of the cost.”
If you have not filed your taxes, then the IRS has several ways they will try to get in contact with you, the timeline of them tracking you down varies by the case.
However, it could damage your financial status.
“When or if your wages are levied by the government,” Wooden said.
If you are unable to file your taxes by April 15th, then you must apply for an extension.