5 Frequently Asked Questions about Unfiled Tax Returns

There are several taxpayers today who have not filed their taxes for decades not but that should not worry you because everything is possible. There are others who have never filed their taxes and are not ready to pay the taxes. What most people don’t know or are not aware of is the penalty for unfiled tax returns.  This penalty differs from one country to the other. If you are not able to pay the IRS that does not mean that you should stop filing your tax return. Here are some of the frequently asked questions concerning the unfiled tax returns.

  1. If you owe back taxes should you file anyway?

It is not a crime when you owe the IRS taxes but it is a crime when you fail to file your tax returns but once you are caught the penalty will be severe. Therefore it doesn’t matter whether you are paying anything to the IRS but it is very important for you to ensure you file your returns. When you are not having enough money to pay them, it is the time you are supposed to negotiate with the Internal Revenue service.

  1. What penalty does the IRS attract for unfilled tax returns?

According to IRS, failing to file attracts a higher penalty as compared to failing to pay.  According to this statement, It is important for you to ensure that you file your tax returns and you should do this on time to avoid being penalized. Also, it is important for you to ensure that you pay as much money as you can so that they don’t accumulate.

  1. Between filing back all taxes and filing personal bankruptcy which one should come first?

It is recommended that you fill back all your taxes before you proceed to filing the personal bankruptcy taxes. The filing of the bankruptcy makes it easy for you to discharge some of your taxes that have been owed. This can only be possible if you show your taxes to the bankruptcy court for the years that you have not been paying so that they can help you get discharged.

  1. With the back taxes owed to the IRS, can one get passport?

 There is no state that denies its citizens passports because of owing the IRS some money.  But your state government can decide to either revoke or even deny you a passport because of violating some tax rules or because you owe your IRS huge taxes. If you have been denied your passport it means that you will have to pay the tax arrears first before being allowed to take your passport.

  1. How to file old taxes when you don’t have the required tax information?

This is easy but the law requires that you use the best of your knowledge when filing your old returns and it should be done appropriately.  Sometimes you will have to contact an IRS attorney to assist you get the required financial details and any other old tax records. For more information visit taxreturn247.com.au

Personal Income Tax Return Help For Everyone

Personal Income Tax Return Help For Everyone

Stop putting off paying your taxes till the last minute. If you want the best tax return you must start early to make sure that your get all the deductions that you deserve. Your personal tax return should not be rushed. So to help you get started here is a list of things you should do to get your ready.

First of all, schedule a time to start filing your tax return and stick with it. Turn off your TV and radio and focus on the job at hand. Gather all the files you need and have some type of tax return help available to you. With the rules for income tax returns constantly changing you need to have all your help at your fingertips.

Tax refunds could get lost

Decide whether your personal tax return will be filed as single, head of house hold, married or whatever. Play around with this to see what would be best for you. You also want to play close attention to the types of deductions you will have such as pensions and IRAs, alimony, student loans and others. Don’t forget to itemize your deductions and compare them to the standard deductions to see which one is best. You want to make sure that you take the higher amount here.

Personal Income Tax Return Help For Everyone

Your exemptions can help you get more out of your income tax return. If you have issues with who can file the children as dependence then get this solved now. You should feel free to visit our article here to know more.  You both can’t file for them at the same time. A tax credit per child is a dollar for dollar deduction and you need to get this worked out. Plus, there are also credits for education, adoption, even foreign taxes and estimated taxes you may need to consider as well.

Once you do all of that you then have to decide how to file your taxes. Are you are going to e-file or put it in the mail. Filing online will help you get your tax return faster but by mail you can have your check directly deposited. Just have to send in a voided blank check. If you are not satisfied you should check out this link:https://www.irs.gov/uac/many-types-of-free-tax-help-available-from-the-irs here. No matter what you decide just get it filed. Do all that hard work to get an income tax return only to put off getting it to the IRS.

Last but not least, get some type of receipt after you file. Your tax refunds could get lost and if it does you will be on the hook. If you file a tax return online they should give you some type of code to keep with your records. You can also file your person tax return by certified mail. That way you have some proof that you filed in case it doesn’t get there.

Now that you got your personal income tax return all taken care of you can relax a bit. If you need more help with your taxes you can always file an amendment to last year’s taxes next year. There is always time to get it right if you plan ahead first.

Now this is for all you self-employed people out there who are looking for ways to save on your taxes. For those who are not self-employed and would like to be, then check out: taxreturn247.com.au

 

The Importance of Filing Your Tax Return

The Importance of Filing Your Tax Return

A tax return is a form that must be filled in for the Inland Revenue (now HM revenue and Customs) with details of things like your income. From the tax return, the amount of tax you are liable for is calculated.

If a tax return is issued you have a legal liability to fill the thing in. If not, you will have a $100 penalty issued. Those individuals who complete returns using software are sent a notice advising them that a tax return is due. If a taxpayer is not issued with a tax return but has tax due they should notify HMRC who may then issue a return. Preparing a tax return is one of those things we tend to build up in our minds as a big deal, when it doesn’t have to be. It’s like painting the living room. After reading this article check out our other article here. Prepare and lodge your own tax return electronically.

A tax return is sometimes required for other reasons (for example, to check if the correct tax has been paid overall). So if you are sent a tax return, you must fill it in and send it back even if you believe that you have no extra tax to pay. A tax return is a document filed with HMRC that declares a taxpayers liability for being taxed, based on their yearly income. Three outcomes are possible from filing a tax return: either the taxpayer has either been charged too much or too little for their income, or they have been charged the correct amount. A tax return is a form on which you are asked to report your income and capital gains, and give details of reliefs and allowances claimed, for a particular tax year.

Tax return is a document filed with HMRC

The tax year runs from 6 April to 5 April, and the tax return covering the year ended 5 April 20016 is sometimes called the ‘2008 tax return’, or the return for 2014/2015. It applies to taxpayers who are identified as requiring a tax return and who are issued with a notice to file or a paper self-assessment tax return incorporating a notice to file. It also applies to people who make a claim outside a tax return. If you are newly self-employed it is not enough simply to file a tax return by October 31 for the tax year in which you became self-employed. You must tell HMRC that you have started to work for yourself within three months of doing so – you face a fine of £100 if you don’t. Furthermore, should you unfortunately die, the executor of your estate must also file an Estate Tax return.

The Importance of Filing Your Tax Return

HMRC have 12 months from the date of filing the return in which to open an inquiry, provided that the tax return is submitted by the applicable deadline for the method used. To read more visit our link:http://www.exposedworldphotography.com/outsourcing-tax-returns-best-way/ here. If a return is submitted after the deadline for that method, HMRC have up to and until the quarter day following the first anniversary of the date the return was filed, in which to open an inquiry. HMRC may sometimes refer to such cases as ‘investigations’, in order to distinguish them from inquiries pursued under the S9A powers.

In such cases, HMRC have to rely on the information powers in TMA70/S20 to support the investigation or seek a Regulation 10 notice (General Commissioners (Jurisdiction and Procedure) Regulations 1994 – SI1994/1812) from the Commissioners in an appeal hearing. HMRC’s local office structure has been dismantled but the new structures do not appear to provide adequate support mechanisms. There is little doubt that this issue is the biggest single cause for concern among tax technicians and accountants, who represent the largest number of qualified tax advisers in the UK, many of whom deal with HMRC on a very regular basis. Remember that if you do file your tax refunds on time and do not breach rules you are far less likely to attract the attention of the HMRC investigators.

 

Don’t Go to Jail! Here’s What to Do If You Have Failed to File a Tax Return

Results of Failing to File Your IRS Returns. If you have late tax returns, you face several possible bad consequences:

-Penalties. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more.

-Lost Refund. In order to receive a refund, the return must be filed within 3 years of the due date. If you snooze, you lose…YOUR REFUND!

-Lost Earned Income Credit. Taxpayers who are entitled to the Earned Income Tax Credit must file a return to claim the credit, even if they are not otherwise requaired to file. The return must be filed within 3 years of the due date in order to receive the credit.

-Lost Social Security Benefits. If you are self-employed, you must file returns reporting self-employment income within three years of the due date in order to receive Social Security credits toward your retirement.

Don't Go to Jail! Here's What to Do If You Have Failed to File a Tax Return

-JAIL!!! Willful failure to file a tax return is a CRIME. Non-filers of tax returns need to act quickly to avoid criminal prosecution for failure to file a tax return. If you have late tax returns, do not delay another day; delaying can cost you your freedom. Even if you believe that you have paid all the taxes you owe through withholding, or by your employer, the willful failure to file a return is a criminal offense. For best information online visit this url:http://www.taxreturn247.com.au here. The best way to avoid criminal prosecution relating to late tax returns is to remedy the situation voluntarily and submit all unfiled tax returns. The IRS is far less likely to pursue a criminal prosecution if you take the first steps in resolving the issue and get all delinquent tax returns filed.

Prosecution Statistics for Non-Filer Cases:

In FY 2006 the IRS obtained:

-Indictments in over half of the non-filer cases it criminally investigated!

-Convictions in approximately 88% of the cases that were indicted!

-Jail time in 80% of the cases convicted!

-Average jail sentences were 40 months long!

File All Tax Returns

You should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on your circumstances, non-filers with late tax refunds may qualify for a payment plan.

In short, delay does not help your situation. If you are a non-filer with delinquent tax returns, you need to file those late returns as quickly as possible.

Documents Required to Prepare a Return

In order to assist with preparing a tax return, taxpayers should bring any and all information related to income and deductions for the tax years for which a return is required to be filed. Some of the documents may include:

-Forms W-2 – Forms from employers showing wages for the year.

-Forms 1099 – Forms from banks and other financial institutions showing interest and dividends. Forms 1099 also report self-employment income.

-Information on expenses to claim on the return, such as itemized deductions, child care expenses, or employee business expenses.

-Social Security numbers for dependent children and any other person claimed as a dependent.

Copies of the last tax returns that you filed.

Can I File By Myself…or Do I Need a Lawyer?

Nothing requires you to hire an attorney to file late tax returns.

However, due to the fact that there is a possibility of criminal prosecution, you should STRONGLY consider hiring an attorney to help you file delinquent returns and protect your interests in the process.

Conclusion

Delinquent tax returns are a serious problem. In the end visit our best article to read more.  Non-Filers should take immediate action to get late returns filed. Voluntary compliance can help reduce or eliminate exposure to penalties, interest, and possible criminal prosecution. Since willful failure to file a tax return is a crime, non-filers should consider hiring an attorney to assist them with coming into compliance.