Delaying a past due tax return costs you money. Act quickly to file a late return. It’s easier than you think.
Filing late will cost you less today than it will in the future -– you may even be eligible for a refund.
Filing a past year’s tax return is important because if you don’t file and you owe taxes for that year, the IRS will place you in their collection process. Once that happens, you’ll receive a notice at 30-days and at 90-days past due. Continued neglect of your tax liability can lead to loss of wages or bank accounts and in some cases loss of property. You’ll also be liable for any penalties and interest — amounts that grow over time.
You may not even owe taxes. The government may owe you a refund. You cannot collect that refund without filing a tax return for every year that you were required to file. Even a late return entitles you to deductions and tax credits that you would have qualified for had you filed on time. Remember, you must file within three years of the original due date or within two years of when you paid your tax in order to collect your tax refund.
Source: www.banks.com.
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