If you have not yet filed your tax return and you are required to file, then you must file your return as soon as possible to avoid paying more in taxes. The taxes you owe to the IRS must already have incurred the monthly penalty and interest. The more time you take to pay your taxes, the more you will need to pay because of penalty and interest.
When filing your tax return late, you need to know the following:
Organize and keep ready all your tax documents and past tax returns
The IRS can ask you for previous tax returns or tax documents, so make sure that you have everything ready.
Prepare your tax return carefully
You do not know if the IRS has determined your estimated tax liability through a substitute tax return and how much is your refund amount. You can seek the help of a tax preparer to prepare your tax return. Use all the deductions and credits that you qualify for.
Watch out for penalties and interest
Due to the penalties and interest the IRS charges on tax debt, you might need to pay more in taxes. If you filed your tax return and the amount you paid in taxes did not satisfy your tax liability, then the IRS will charge penalties and interest on the remaining debt every month it remains unpaid.
If you have a tax debt
If you did not file taxes in the past, then you will first need to resolve your tax debt and then get current with this year's tax liability. The IRS will require you to file all your past tax returns before resolving your tax debt under a payment plan. You should use outside help to resolve your tax debt if the tax debt amount is large.
Labels: Back Taxes, IRS, Tax Filing, Tax Refunds, Taxpayers