- If you have a child moving into higher education and you are in need of federal financial assistance...a review a filed tax returns is a requirement in order to receive that assistance.
- Lending institutions may require tax returns for you to qualify for a loan.
- Social Security income, medicare and disability benefits are all figured on the basis of a tax payer's lifetime earnings which is based from information obtained from the tax returns filed.
- Just like Social Security, Medicare and Disability income listed above, Unemployment income is also based on tax returns filed.
If you do not file your returns you can incur failure to file penalties, forfeit tax refunds, lose your Earned Income Tax Credit, and open yourself up to criminal charges for failure to file.
The bottom line is: make sure you file your returns. Even if you DO NOT have the money to pay what you owe the IRS you still need to file the returns. For more information, please consult a tax professional.