We are now past the filing deadline for ALL 2011 tax returns. If you haven’t filed, chances are you are going to face repercussion from the IRS for your indiscretion. Keeping that in mind, the penalty will continue to get worse the longer that you wait so it is best to clean up your mess before it grows even larger. There are certain situations related to filing later that you must consider. Take a look at the details below.
• Filing late – The Basics
Filing a past due return is the easiest part of the process. You can even prepare the return on TaxSlayer.com and print out the forms to be mailed in. Feel free to contact our support team or visit the website for more information. Fill the return out just as you would have before and you are on your way. Keep in mind if you are owed a refund and/or the earned income credit you must file the return within 3 years to receive it…why wait to receive money that is YOURS?!? Also, if you are self-employed you could forfeit the Social security benefits that are due to you if you don’t file. These benefits are calculated based on your filing history.
• Always pay in full
If it is financially reasonable always make in effort to pay the taxes that you owe, along with late filing penalties and interest, in FULL. By doing so you can save yourself the penalties and interest that may result from continuing to put off payment, the longer you wait, the heftier they get.
• Payment options
Payment options are wide ranging and can help anyone. For starters you can pay via credit card or debit card. You can also have the funds directly withdrawn from your account. Most IRS offices will even accept cash. In most cases you can also contact the IRS to set up a payment schedule, it is better to set this up sooner than later and get it over with.
• Sitting tight and the repercussions
Say you choose to sit it out and not file your taxes…you could be in for a world of trouble. For starters the IRS will continue to assess penalties and interest until the amount due is paid. These can add up quickly and far eclipse the original liability. In many cases the IRS will calculate your amount due based on a substitute return. This return will be calculated based on information they receive from other sources and in all likelihood will not come out nearly as favorable as a self-prepared return due to the lack of exemptions etc. Once the IRS establishes an amount due they can place a levy on your wages or bank account and can even place a lien on your property. Oh yea…they can always toss you in jail.
In summary, don’t wait to file your return, just because things look bad , they can get WAY worse. Log in to TaxSlayer today and get started on filing your past due returns…don’t wait.