Past Year Tax – Some Things to Know About Past Year Tax Returns
Tax forms are used for filing income taxes to the internal Revenue Services (IRS). The tax returns are mostly set up in a form of a worksheet, with tax liability being calculated and is documented by itself. This tax return must be filed each year by individuals or business owners who receives income in that year. It could be through regular income, capital gain, interest, profits or other dividends obtained.
It is much better if will file all tax returns which will have due dates even if you can or cannot pay the full amount. Having to file your past due returns in the same way year-on-year gains the trust of the IRS which is important when filing returns.
But why is it necessary for you to file past due tax returns?
1. Avoid penalties and high interests. File past dues to limit high charges for interest and penalties. This will be a cost on your part. Instead of getting a refund, you will now be paying. You must be responsible enough with your dues, to avoid this happening again and again.This website will show you how to do a proper tax return filing.
2. Claim for a refund. You will certainly lose your refund if you don’t file your return. You have to file your income tax return within 3 years of the due date, including any extensions given to you.
3. Protect your benefits, such as your social security. This is much more important if you are a self-employed individual. If you don’t file for a federal income tax return, you won’t be reported to the SSA and this is the reason why you cannot receive credit on Social Security disability or retirement benefits.
4. Avoid problems in getting loans. Approval for your loan will not be easy if you don’t file your income tax return.
It is necessary for you to file your past due tax return, whether you can can’t pay it in full. Remember that the more time you wait to file, the higher the fees and penalties. But there is still other way to minimize damage on your part by not filing tax return.
However, it is the best way to file tax before deadline, whether you can or can’t pay it in full. This would really help you to limit interest charges and penalties. But if you cannot pay your taxes still, you may request extension of an additional 60-120 days to make a full payment on your taxes.see some more information at http://thehill.com/business-a-lobbying/281194-dem-senator-offers-bill-to-require-candidates-to-release-tax-returns
Everyone can make a mistakes. There are many instances where people make mistakes, but you can’t escape paying tax, especially when it is business related tax issues. However, you must also consider areas that need more attention. Otherwise, it could affect your personal life, and your family. In this way, it is vital for you to take charge of your problems as early as possible to resolve any issues.