SolveYourProblem
Article Series: Taxes
Help Me Understand My Taxes
Filing
a Late IRS Tax Return: FAQs
They say nothing is certain in life besides
death and taxes, and most people try to do everything they
can to put both of them off for as long as possible. The time
comes, however, when you have to face them both, and when it
comes to a late IRS return, it is important to face it sooner
rather than later. Whether you haven’t filed a return for years,
or if you have just been slow to get your most recent tax return
together, dealing with the problem as soon as possible will
help you avoid costly late fees, the repossession of your property,
and even jail sentences. As scary as that all might sound,
if you do your research and face up to the problem while armed
with the fax, the IRS can actually help you bring your
taxes up to date in a way that will tackle your past due debt and
make sure you are better able to manage your taxes for the
future.
First things first; you have to re-adjust your thinking about
the IRS. If you have failed to file even one tax return on
time, it can be easy to get caught up in the myth that
the IRS is lurking behind every corner, waiting to grab all your
cash and cart you off to some federal prison some where. Not
so. IRS policy is to work with citizens who come forward and
fess up to being behind in their taxes, and they never recommend
criminal prosecution for tax evasion unless they suspect a
deliberate crime has been committed. You get bonus points for
being honest, so if you are several years behind in your taxes
take a deep breath and phone the IRS. They will help you get
back on track without disrupting your life.
If your tax return isn’t late yet, but you know it will be,
the course of action you should choose depends on why you think
you will need to file your return late. If you are missing
some paperwork or just haven’t been able to get around to filling
out your forms, then you should file a Form 4868 requesting
an extension. Send in one of these forms, and you will have
until October 15 to get your return in. The kicker is that
you must estimate your tax bill and mail in payment with your
extension form. When you do get around to doing your taxes,
if you have paid at least 90% of your bill, then you’re in
the free and clear. If you have underestimated your bill and
paid less than 90%, you will be hit with penalties.
If you are avoiding filing a return because you can’t afford
to pay your tax bill, don’t wait. Send the form in on time,
along with partial payment, and a request for an installment
payment plan. Then, follow up with the IRS to get a payment
plan nailed down. They WILL work with you, and you WON’T be
hit with late fees if you get your return in on time and address
the problem up front.
The key to solving all of your late return problems is communicating
with the IRS, and as such, it is important to keep a record
of all conversations you have with them regarding your circumstances.
If your case is particularly complicated, then hire a tax attorney
to deal with the IRS on your behalf. One interesting fact to
note, if the IRS owes you money, they’re in no hurry to track
you down. You have up to three years to deal with those claims.
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SolveYourProblem.com : 2007
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