The FAQs to Filing a Late IRS Return

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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