If you have worked or studied in the USA, did you know that you are obliged to file taxes?
Many nonresidents are unaware of this fact due to a combination of factors, such as busy lifestyle or they have left the country.
However, whatever the case may be, not filing your taxes has very serious consequences.
If you are a nonresident and still live in the US, continuing to avoid your responsibility can result in automatic wage seizure by the courts, asset seizures like your car and may even lead to arrest and jail time for tax evasion.
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What happens if I don’t file?
If you do not pay the taxes you owe by the tax deadline (15 April every year) you could be hit with a variety of punishments.
Here are a few different dangers of not filing your tax return:
You could miss out on your tax refund!
If you are entitled to a tax refund, you won’t be punished for filing late by the IRS.
If you wait longer than three years from the date your refund is published, however, you will lose out on your chance to claim the refund as it will automatically be handed over to the US government.
You could be hit with fines and penalties
If you have unpaid taxes, you will owe the IRS interest in addition to any penalties.
You should do your best to file your tax return before the deadline to avoid facing penalties and fines!
Failure-to-file penalty
The penalty for filing late is normally 5% of the unpaid taxes for each month or part month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25% of your unpaid taxes.
If you file your tax return more than 60 days after the due date or extended due date, the minimum penalty is strong – $510 (for tax returns required to be filed in 2025) or 100% of the unpaid tax, whichever is less.
Failure-to-pay penalty
If you do not pay your taxes by the tax deadline, you will normally face a failure-to-pay penalty of 0.5% of your unpaid taxes.
That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date.
If both penalties apply
If both the 5% failure-to-file penalty and the 0.5% failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5%.
Your tax compliance affects your future Green Card and visa applications
The way you handle your international student tax affairs will have a major impact on future Green Card and visa applications.
Failure to file or filing a non-compliant tax return can also jeopardize your future US visa green card applications.
Can I file if I have left the US?
Yes!
You can file your US tax return with Sprintax from anywhere worldwide!
Sprintax is the only online Federal and State self-prep tax software for nonresidents in the US!
Our system will assist you in preparing fully compliant Federal and State tax returns and secure your maximum legal tax refund.
The average federal refund in the US is $927!
With Sprintax you can:
- Save time and stress!
- Determine your residency status
- Prepare a fully compliant US tax return
- E-file your 1040-NR (nonresident federal tax return)
- Maximize your State tax refund
- Avail of our 24/7 Vita Qualified Live Chat facility
