Not filing your tax return is not only against the law, it could also leave you with a large balance owed to the government with some penalties and interest added on. That’s why you need to always, always, file your tax return, even if you can’t pay your tax liability in full. This can not only help you stay in compliance with the federal government, but it also helps you avoid penalties and other consequences. If you have a balance due, filing your past due return now and paying your tax liability can limit the interest and late payment penalties you have to pay.
Filing your tax return on time, not only helps you stay in compliance with the law, it also can get you your tax refund if you’re eligible. If you’re owed a refund for withholding, estimated taxes, or eligible tax credits, you risk losing that refund if your tax return is not filed within 3 years of the due date. The same rule applies to tax credits such as the Earned Income Credit. You will still have to file your tax return after those three years, but you will just lose out on getting your tax refund. If you’re self-employed and fail to file your tax return, any self-employment income you earned won’t be reported to the Social Security Administration. As a result, you won’t receive credits toward your Social Security retirement and disability benefits.
Not filing your tax returns can not only affect the money you get from the government, it can also affect other financial aspects of your life. Because copies of filed tax returns are usually required by financial institutions to secure loans, mortgages, and other financial benefits such as federal assistance for higher education, you may be ineligible or face delays if you’re not current with your tax returns.
If you need help filing previous year’s tax returns, you can download prior year IRS tax forms and instructions here. If you need wage and income information to help prepare a past due return, complete Form 4506-T Request for Transcript of Tax Return and check the box on line 8. You can also contact your employer or payer of income. If you need information from a prior year tax return, you can use Get Transcript form to request a return or account transcript.
If you haven’t filed your tax returns and aren’t sure how much you owe the government, Polston Tax can help. Our team of tax preparers and tax attorneys can help get you into compliance with the law, and find the best payment options for you to overcome your tax liability. Our attorneys can even work to get the penalties, interests and other fees waived to help you afford your tax payments. Give us a call at 844-841-9857 or fill out a form below for a free consultation.