4. Filing of Tax Lien

The federal government may file a lien against you for the tax debt you owe. To file a tax lien, the federal government must send you a Notice for Demand for Payment. You will have 10 days to pay the debt, or the government can file a tax lien for your tax debt. The lien will attach to all property you have, including your house and car.

5. Embarrassment when you buy a house

Someday, you might decide it’s time to own the place where you live. Many mortgage companies expect you to provide several years of tax returns. What are you going to tell your realtor when you can’t produce the documents?

If you need more time to file, you can always ask the government for an extension. And if you can’t pay the bill that you’re facing, send in something with your return and then negotiate an installment plan.

Besides, you shouldn’t be getting discouraged now. There’s plenty of time to get things finished before April 15. And no, doing “research” for your March Madness bracket is not an excuse to avoid the inevitable.