Monthly Archives: July 2016

Chart: Showing Benefit of Buying Due to Cheap Mortgages Over the Cost of Renting


This line graph indicates the contrasting relationship between mortgage affordability and rent affordability, over a period of years.

On the ‘y’ axis, is affordability. Here, affordability refers to the amount of income spent on paying for housing costs.

On the ‘x’ axis are a series of years starting with 1982 and ending at 2017, with five year intervals.

In 1982 the average person spent twenty-five per cent of their income on mortgage payments, and would have experience a sharp surge in costs, resulting in a fifteen per cent increase in mortgage rates.

This would prove to be the last upsurge for mortgage payments, as the mortgage affordability continued to steadily decline from 1987 onward.

Rent affordability, on the other hand, started out at twenty-three per cent or less, and steadily rose to about thirty per cent of one’s income by the end of 2012.

Will I Get in Trouble for not Filing my Taxes?

Have you avoided filing your taxes? Maybe you do not have enough information to complete your tax return or you do not have sufficient money to pay your liability. Whatever your situation may be, not filing your taxes has serious and severe consequences. When you know a myriad of stories about people avoiding tax, you do not have to do the same because failing to file a tax return is more expensive.

Not filing your tax can lead to criminal penalties such as fines, civil penalties, and even imprisonment. When you cannot afford to experience these worse situations, it is better to follow the rules and regulations in your country. You will see the difference between failing to file your tax return and paying your taxes.

What will happen when you fail to file?

When you fail to file a tax return, the Internal Revenue Service (IRS) may file a substitute return. Though your accountant would include standard deduction in your return, IRS will never include them. The institution will not be looking to help save your money.

However, substitute return has only one exemption. Whether you are single or married, you need to file a separate tax return. So, you can have less tax liability when you perform your obligation as a tax payer.

What to do when you can’t pay your tax responsibility in full?

As a person who pays taxes, you need to do your obligation in advance to avoid complicated penalties and high amount of interests. When you cannot pay your tax liability in full, it is necessary to visit the IRS near you to explain your case. Depending on the situation, IRS may provide the following:

  • Installment Agreement – In this resolution, you may be obliged to make monthly payments. Also, it allows you to pay in full in more manageable and smaller amounts. So, if you cannot file a tax return, you can take advantage of the installment agreement provided by the IRS.
  • Temporary Delay – Aside from installment agreement, IRS may temporarily delay the collection of your taxes. However, it is significant to prove that you do not have the ability to pay your tax debt. During the process, IRS looks over your capability to pay then take an action to protect the interest of the government.
  • Offer in Compromise – IRS will settle your unpaid taxes less than the full amount of your balance. But, you have to pass the requirements in order to get qualified. Offer in Compromise is applicable to all interests, penalties, and taxes. When filing for the resolution, you will be charged a certain amount.

When you receive an incorrect bill, call or visit the nearest IRS. Make sure that you keep a copy of records, canceled checks, and tax returns. As a result, you can help IRS understand and identify their mistakes.

The bottom line is, failing to pay taxes can result in expensive penalties and imprisonment. For sure, you cannot afford to experience those complex dilemmas. Whether you are unable to pay your taxes or have a hectic schedule to perform your obligation, you should not forget filing your tax return.