We’re seeing more and more that filers who e-file their tax returns are being asked for copies of their driver’s licenses or state IDs in order to complete the process. If your accountant or tax preparer asks you for this information, make sure they give you a good reason: they may need to verify your identity, ensure that no one else files in your name, or help prevent fraud on their part.
In this post, we find out the following: Can You File Your Taxes With An Expired Id, what happens if you don’t file your taxes but don’t owe anything, what happens if you dont file your taxes on time, and can you file your taxes with an expired id in texas.
Can You File Your Taxes With An Expired Id
For individual filers who are required to e-file their income tax returns, don’t be surprised to hear your accountant tell you she needs a copy of your driver’s license or state ID in order to process your filing.
During this tax filing season, more and more states are requiring tax return preparers to include driver’s license numbers (or another form of state-issued identification) on e-filings, as a measure to help combat identity and refund theft.
In states that require it, failing to include this mandatory information will prevent accountants from e-filing taxpayers’ return. (On the bright side, providing this information may help state taxing authorities process tax returns more quickly).
As of this writing, the following states either require or request a driver’s license number or other state identification to be included with the e-filing of state returns:
It is optional, for now, in New Jersey and Pennsylvania.
However, many state preparation software programs may still require the ID in order to process returns, regardless of the state filing requirements. Filers may need to check with their providers to see if this is a requirement with their service provider.
Currently, a driver’s license or other state-issued ID is not required to file a federal return.
The tax advisors at Marcum LLP will be requesting this information from our individual tax clients, effective for the 2016 tax year. Joint filers will need to provide the identification for each spouse.
Should you have any questions concerning this Tax Flash, please contact your Marcum tax professional.
what happens if you don’t file your taxes but don’t owe anything
Filing taxes might not be at the top of your to-do list each spring, but you should strongly consider it if you earn income—no matter how much or how little.
Do I have to file taxes?
This depends on several factors including your income type. From self-employment, through an employer or investments) and amount, tax filing status, age, and other factors.
Generally, not everyone needs to file a tax return each year. In fact, you won’t need to file a tax return unless your total income exceeds certain thresholds, or you meet specific filing requirements.
Typically, if your income is less than the standard deduction, you don’t need to file a tax return. However, even if this is the case, you may still need to file a tax return if you meet certain conditions. You won’t need to file a tax return if all of the following are true for your situation:
If you don’t meet all of these conditions, you may need to file a tax return. However, in the event you don’t meet all of these conditions, you may still want to file a tax return anyway. If you earned income during the year and had taxes withheld from your pay, to get any excess you’re owed back via a refund, you’ll need to file a tax refund.
The IRS doesn’t automatically issue refunds if you’ve overpaid your tax bill each year. In that case, you want to file a tax return to claim any tax refund you may be entitled to claim.
For example, suppose you file as a single taxpayer who had $500 of federal income tax withheld from your $6,000 of earnings and no one else can claim you as a dependent on their tax return. You likely can get that money back since you earned less than the standard deduction for your applicable filing status. However, you can only get it by filing a tax return.
What happens if you file taxes late?
Generally speaking, the earlier you can file your return, the better.
In the event you file taxes late, the IRS starts by sending you a summons. If you earned enough income from a W-2 job or from self-employment during the tax year, generally, you should receive a W-2 or 1099 form reporting your income. Even if you don’t report income on your tax return, you must remember that your employer or client might have.
The summons comes via mail and the IRS collection process begins, meaning the IRS has a reasonable belief that you do owe taxes. You’re legally required to meet with the IRS for you to determine your tax liability.
What happens if you don’t file taxes?
If you need to file taxes but choose not to, the IRS has several means for bringing you to the table. Actions include, but are not limited to, assessing penalties, fines and interest; enforcing tax liens, or more severe measures, for evading any taxes you might owe.
If you fail to file your taxes on time, you’ll likely encounter what’s called a Failure to File Penalty. The penalty for failing to file represents 5% of your unpaid tax liability for each month your return is late, up to 25% of your total unpaid taxes.
If you’re due a refund, there’s no penalty for failure to file. Though, you do lose the chance of getting that refund. You have a limited period to claim that refund as well. If you haven’t filed an original return within 3 years of its due date for a refund, you’ve missed the statute of limitations entitling you to the chance of claiming that refund.
What happens if you pay taxes late?
If you filed a tax return on time but didn’t pay any owed taxes when they were due, the IRS will likely assess a penalty on you. You’ll also learn of this penalty through the mail.
The penalty for failing to pay taxes on time is based on how long your overdue taxes remain unpaid. Failing to pay is a lot less expensive than paying the penalty for failing to file: 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The IRS won’t levy a penalty of more than 25% of your unpaid taxes.
If you incur both penalties in the same month, the IRS will reduce the Failure to File Penalty by the amount of the Failure to Pay Penalty. For example, if you didn’t file a return and pay your taxes for an entire month, the 5% Failure to File Penalty would be reduced by 0.5% and only a 4.5% net penalty would apply.
The IRS gets a bit more lenient if you missed your tax payment but filed your individual tax return and have an approved payment plan in place. In this case, the Failure to Pay Penalty is reduced to 0.25% per month (or partial month) during your approved payment plan.
However, if you still choose not to pay your taxes within 10 days of receiving a notice from the IRS with an intent to levy taxes against you, the Failure to Pay Penalty becomes 1% per month or partial month.
The IRS applies full monthly charges on these penalties, even if you pay your taxes in full before the month ends.
After 60 days of failing to pay, your bill, in addition to the taxes you originally owed, will be a minimum of $435 or 100% of the tax required to be shown on the return, whichever is less.
If you do eventually file your taxes on time or pay your owed taxes, you can request to have the penalty removed through calling or writing to the IRS through a process called abatement. Though, repeat offenders aren’t likely to have these requests approved. The IRS generally only allows you a pass on your first time missing deadlines under the First Time Penalty Abatement Policy.
Will you pay interest if you don’t file or pay taxes on time?
If you don’t pay your taxes on time, the IRS won’t only levy penalties for not paying on time, they’ll also assess interest on your past due taxes as well.
The IRS begins accruing interest starting on the date your original tax bill was due, often the federal tax filing deadline each year. The date is generally April 15, though it can move depending on where the date falls in a week.
To make matters worse, you might owe this interest not only on the unpaid tax balance the IRS states that you owe, but you may also have to pay interest on the penalty if you fail to pay that amount as well.
To calculate the interest you owe to the IRS, the agency uses the federal short-term rate and then tacks on an additional 3%. The Failure to Pay Penalty interest is equal to 0.5% for each month you don’t pay.
What happens if you refuse to file taxes?
If penalties and interest aren’t discouraging enough and you outright refuse to file taxes, the IRS can enforce tax liens against your property or even pursue civil or criminal litigation against you until you pay. The severity of your refusal will determine the path the IRS will take.
Refusing to file taxes could result in the IRS filing a return for you. This return, called a substitute for return, isn’t always the most favorable for your situation.
The IRS will use the information it has available (such as 1099 forms or your W-2) but won’t give you any of the available tax credits or deductions that you might have used if you’d prepared your own tax return.
As a result, you’ll be set up to pay the maximum possible taxes while also paying the associated penalties for failing to file on time or pay your taxes, in addition to any interest charges you’ve accrued.
Should I file taxes even if I don’t have to?
While not everyone needs to file a tax return, based on 2020 tax year numbers, Americans filed nearly 170 million tax returns. Data shows that most Americans decide to file, even if they don’t need to file one.
If you have federal income taxes withheld from your paycheck, the only way you can receive a tax refund when too much was withheld is if you file a tax return.
You might also be required to claim tax credits like the Earned Income Credit or for one-off events like the Recovery Rebate Credit, the payments better known as “stimulus checks,” which acted as advance refundable tax credits. Some refundable tax credits specifically require you to file a return, even if you don’t earn enough or meet one of the other criteria used for determining your need to file a return.
what happens if you dont file your taxes on time
The tax-filing deadline is typically April 15 each year. For 2021 taxes, however, the deadline for most people to file is April 18. This can also be extended to Oct. 17 without much issue. Although, tax payments are still due by April 18. Not being able to file on time can happen for a number of reasons, from simple forgetfulness to unexpected emergencies.
Regardless of what may cause a person to miss the tax filing deadline, there are potential consequences. This is what happens if you don’t file taxes.
What happens if you file taxes late
Again, the April 18 deadline is for making tax payments. Individuals can apply for an extension to file later in the year.
However, if April 18 passes before you make your tax payments, there are a couple of different things that may happen, depending on your status as a taxpayer.
What happens if you don’t owe taxes or get a tax refund?
Most Americans get a tax refund after filing their federal and state taxes. This occurs when you have paid more in taxes over the course of the year than you owe. Most employers withhold money from each paycheck, which go toward your taxes — but those withholdings typically don’t account for the rebates and credits that you may be eligible for, resulting in the government needing to pay you back in the form of a tax refund.
If you fall into this category, owing no taxes to the government or being owed a tax refund, then there is no penalty that occurs for not filing your taxes. However, you won’t receive your tax refund until you do file your taxes. There will be no penalty for filing late, just get the paperwork in to the IRS so they can process your taxes and issue the refund. Technically, you have three years to file taxes and receive a refund.
What happens if you do owe taxes?
If you are self-employed or don’t have money withheld from your paycheck, odds are that you will owe the government money when you file your taxes. That means if you fail to file your taxes by April 18, you may start facing penalties because you owe the government money.
You can delay some of these penalties by filing for a tax extension. This gives you an additional six months to file your taxes, allowing extra time to get everything in order and delaying some of the penalties for failing to file that you may otherwise face. Filing an extension will prevent the government from penalizing you for failing to file. Your tax payment is due by April 18 regardless of when you file. Potential penalties and interest may apply for not making your payment on time, regardless of whether you have extended your filing deadline.
Failure to file penalties
If you don’t file for an extension, or fail to file by the extended deadline, you will start to face penalties. Failure to file penalties result in a 5 percent penalty each month on any unpaid taxes, capping at 25 percent. Here is how it breaks down:
There are some cases, including natural disasters and military service, that the government will forgive failure to file penalties. But unless you fall under one of those exemptions, expect to pay the penalty. The IRS can also recommend jail time for people who fail to file their taxes, though such cases are rare.
State laws vary considerably, so check what your local laws are for failure to file.
What happens if you pay taxes late
Whether you file your taxes or not, you owe the government money, and the government expects to be paid on time. That means failing to pay your taxes on time can result in penalties, as well. Whether you submit your taxes or not, the IRS will send you a notice for what you owe. Failing to pay that amount by the date they are due, April 18, will result in daily and monthly penalties.
Each month that you fail to pay your taxes in full will result in the IRS assessing a penalty of 0.5 percent of your total tax liability. This will continue each month, maxing out at 25 percent of your total owed tax bill.
There is also interest owed on any outstanding taxes, which begins to accrue the first day that your taxes aren’t paid and compounds daily until the bill is paid in full. The interest will be determined by the current federal short-term interest rate plus an additional 3 percent. The short-term rate changes every three months, so your interest rate may go up or down depending on how long it takes to pay your taxes in full.
Paying down your owed taxes creates less money for the government to charge interest on, resulting in the failure to pay penalty being less severe. However, allowing it to accrue long term can result in steep and significant fines. The IRS can also seek to have people jailed for failing to pay their taxes, but it is extremely uncommon for that to happen — particularly if the tax bill is not well into the hundreds of thousands of dollars or more.
State laws vary considerably, so check what your local laws are for failure to pay.
What happens if you haven’t paid taxes in years
If you haven’t paid your taxes in years, it is possible that the IRS will seek to recover those funds from you in a number of ways. This may include garnishing wages from your paycheck, placing a lien on your home or other high-value property, or come directly for your bank account. The IRS may also withhold future tax returns until your tax bill has been paid down.
There are other penalties you may face, as well. If you owe more than $55,000 in taxes, the government can refuse to issue you a passport. The IRS may also choose to refer your outstanding tax payment to a private collections agency, which will likely be much more aggressive in trying to recover the funds.
There is a 10-year statute of limitations on unpaid taxes, meaning in most cases the IRS cannot pursue taxes owed that go back beyond a decade. There are some exceptions, but in most cases, the agency will have to drop its collection efforts.
Steps to take if you’re behind on taxes
If you have fallen behind on your taxes or haven’t paid your taxes in years, there are a number of steps that you can take to help alleviate the pain that penalties and interest for unpaid tax liabilities may place on you.
What to do if you can’t afford to pay taxes
If you can’t afford to pay your taxes, you will want to contact the IRS and inform them of this. The agency is more interested in collecting what it can than penalizing you, and is likely to work with you to set up a payment plan or an installment agreement. Payment plans still carry some interest and penalties, but less than the penalties for those who are not paying. However, failing to make a payment may result in the government requesting the full amount and ending the installment plan.
If you inform the IRS that you cannot pay, it is also open to negotiating a smaller payment. Oftentimes, the IRS will lessen your overall tax burden if you are willing to pay in a lump sum.
can you file your taxes with an expired id in texas
The Texas Department of Public Safety is committed to protecting the citizens of Texas by only licensing individuals who are properly identified and can demonstrate their ability to safely operate a motor vehicle on public roadways.
The United States Congress passed the REAL ID Act in 2005 in response to the terrorist attacks on 9/11. The REAL ID Act requires states to adopt and implement uniform standards for the issuance and production of state-issued driver licenses and identification cards if they are to be accepted as identity documents by the federal government. This Act strengthens the integrity and security of state-issued cards in an effort to reduce identity fraud and terrorism.
Beginning May 3, 2023, only state-issued driver licenses and identification cards that are fully compliant with the REAL ID Act will be accepted for official federal government purposes, such as entering secure federal buildings or boarding domestic flights. Texas began issuing REAL ID compliant cards on October 10, 2016, and these cards are marked with a gold circle with an inset star located in the upper right-hand corner, as seen in the examples below.
All Texas driver licenses and identification cards, both compliant (star) and non-compliant (no star) are valid until the expiration date shown on the card. If you replaced or renewed your card after October 10, 2016, and have a gold star in the right-hand corner, your card is REAL ID compliant and no further action is required on your part. You may continue to use your compliant card for federal identification purposes until it expires.
If your card does not have the star, you can continue to use the card after May 3, 2023, but it will only be accepted for state-related purposes such as driving (driver license only), banking, and voting. It will not be accepted as identification for federal purposes.
To order a certified copy of your Texas birth certificate, or if you were born in Texas and never issued a birth certificate, you may contact the Department of State Health Services (DSHS) for assistance.
Select one of the images below for more information.
If DSHS is unable to provide you with a certified copy of your Texas birth certificate and you are unable to present another official document proving your identity or U.S. Citizenship, please send an email to REALID@dps.texas.gov. Be sure to include your full name, date of birth, and a telephone contact number where you can be reached.
For additional information on the REAL ID Act, how it may impact you, and renewing or replacing your card, visit our Frequently Asked Questions below.
REAL ID is a coordinated effort by the states and the federal government to combat terrorism, identity theft, and other crimes by strengthening the integrity, accuracy, and security of the driver license and identification card issuance process. The REAL ID Act was part of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and the Tsunami Relief Act and was passed by the U.S. Congress in 2005.
2. How did the REAL ID Act impact the Texas driver license and identification card issuance process?
The REAL ID Act established new minimum issuance standards, which include:
The Texas driver license and identification card issuance process is in compliance with these standards. These requirements are not based upon age, but for providing for the security of the driver license and identification card issuance process.
3. Is Texas compliant with the REAL ID Act?
Yes, Texas has implemented all of the security standards required by the REAL ID Act and began issuing REAL ID compliant DL/ID cards on October 10, 2016. The Texas REAL ID compliant-card is marked with a circle with an inset star located in the upper right corner of the card.
4. How does Texas complying with the REAL ID Act benefit me?
Texans are able to use their current driver license or identification card for federal identification purposes for boarding domestic flights, entering federal facilities, and other official federal purposes.
5. What would have happened if Texas had chosen not to comply with the REAL ID Act?
After May 3, 2023, Texas DL/ID cards would not be accepted for federal identification purposes, and Texas residents would not be able to enter federal facilities or board a domestic flight unless they had another form of identification acceptable for federal purposes, such as a U.S. Passport.
Because Texas is in compliance with the REAL ID Act, all Texas driver licenses and identification cards are currently valid forms of identification for federal purposes.
If your card expires after May 3, 2023, and you want a REAL ID compliant card, you can request a duplicate card either in person or through Texas.gov. If you have been issued a card on or after October 10, 2016, and see a gold star in the upper right hand corner, you already have a REAL ID Act compliant card, and no further action is required on your part.
If you received your renewal notice in the mail, be sure to bring the required documents that are listed in your renewal notice. If you did not receive a renewal notice, are obtaining a replacement, or are not sure what to bring with you, you may use our interactive REAL ID Document Check Application to assist in preparing you for your Driver License office visit. Just follow the steps, and at the end, you will have a customized checklist of the documents to bring for your visit. While these documents may already be on file with the Department, bringing them with you will minimize any delays in renewing or replacing your driver license or identification card.
To determine if you are eligible to renew online or need to obtain a replacement card, visit www.texas.gov.
7. Why was a notice mailed to me asking me to renew early?
Notices are being sent out reminding customers that they can renew their DL or ID card up to two years in advance of expiration to provide customers with plenty of notice to receive a REAL ID compliant card by the May 3, 2023, deadline if they want one.
8. I don’t fly on domestic flights or visit federal facilities. Do I still need to get a compliant card?
No. As long as your existing Texas DL is still valid and not expired, it is acceptable for driving on any public roadway nationwide, and an identification card will continue to be valid for non-federal identification purposes. However, when you renew again, you will receive a REAL ID compliant card.
9. I have both a Texas driver license and identification card. Can I keep both?
No. REAL ID and Texas law only permits a person to hold a driver license or identification card, but not both. You can view the law by visiting Texas Transportation Code Section 521.183.
10. Does the REAL ID Act create a national database of driver information?
No. Driver information is securely maintained by the Texas Department of Public Safety and is not entered into a national database.
11. Do REAL ID compliant marked cards contain an electronic chip?
No. Texas driver licenses and identification cards do not contain an electronic chip. Some states issue an enhanced driver license or identification card that contains an RFID (Radio-Frequency Identification) chip to assist with rapid identification checks at federal border checkpoints. Texas does not participate in this program.
12. What happens if I do not currently have a REAL ID compliant Texas driver license or identification card and do nothing until after May 3, 2023?
If your driver license is still valid, you may continue to use it for non-federal purposes, such as operating a motor vehicle, voting, or banking. You will not be able to use it for federal identification purposes, such as boarding domestic flights or entering secure federal facilities, after May 3, 2023. If you attempt to present a non-compliant Texas driver license or identification card after May 3, 2023, the Transportation Security Administration (TSA) or other federal agency responsible for security will determine whether to permit you access/entrance or subject you to additional screening as prescribed by that agency.