August 29, 2020 | Late Filed Returns
Why Should You File Your Due Returns Now?
The Internal Revenue Service (IRS) sends one or more notices to you when you fail to file your tax returns on time. These notices contain detailed information about your past due returns and some guidelines that tell you what you need to do further to fill your due returns. If you get these notices from the IRS, then you should file your due returns as soon as possible otherwise you can face so many problems in the near future.
Regardless of whether you can pay the full amount of your due return or not, file all your due tax returns otherwise you will be in big trouble. Here are some reasons why you should file your due returns now.
Reasons to Files Your Due Tax Returns Now
An unfiled return poses several risks. It is a headache for a taxpayer. It can occur for several different reasons such as family emergencies, illness, financial inability to pay the returns, and many more. The occurrence of it always leads to a huge loss and therefore, it is always better to file the return on time.
Avoid Interest and Penalties
As an IRS taxpayer, you must have known that the IRS charges a certain rate of interest and penalties for late payments for unfiled returns. If these are added to your due returns, the actual amount of due returns gets almost double. The rate of interest on due returns increases every month and the penalties get double if not paid on time. Therefore, every taxpayer wants to avoid these penalties and interest. If you want to avoid interest and penalties on your due returns, then file them now. If you are finding difficulties in this legal procedure, then you can look for unfiled tax returns help. A certified professional tax attorney or tax law firm can help you file your returns as soon as possible. You can hire a trusted attorney with an investment of a few dollars.
Avoid Criminal Charges
Of course, you will never want any type of criminal charges imposed on you. You may have clean records but if you don’t pay your taxes on time, then you can be penalized under the criminal act as not filing taxes on time could be criminal activity if done intentionally and without a solid reason. And once you are charged under the criminal act, then you will face so many problems for a lifetime. Therefore, it is better to file your due taxes on time and be on the safe side
Get Your Refund
The IRS holds your refund until you pay your due tax returns. You risk losing it if you don’t file them. According to the tax law, you must file your past tax returns to claim your refund for withholding or estimated taxes within three years of the return due date. This rule also applies for credits such as Earned Income Credit.
So, make sure you file your due tax returns for the previous years because after only then you will be able to claim your refunds. On the other side, if you give a realistic and convincing reason for not filing your returns by the deadline, then there is a chance that the IRS officers release your refund when you claim.
Protect Social Security Benefits
The social security administration of the US runs so many social security schemes such to benefit the citizens. If you do not file your federal tax returns and past dues, then you will not be able to take the benefit of these social security benefits. This would absolutely be a huge loss for you. To protect your social security benefits, you need to file your tax returns on time.
Obtain Loans Without Having Any Issues
You can face so many different issues while obtaining a loan from a bank or a loan provider if your past tax returns are not filed. A copy of filed returns is a must to be submitted to the financial institution (bank or other loan providers) for obtaining a loan. Without it, financial institutions cannot disburse the loans.
These are the top five reasons why you should file your past return now. If you fail to do so, you will certainly face all these things. Eventually, you will be at a huge loss. Therefore, it is better to pay your taxes on time. If you find any kind of difficulties in filing your returns, you can take legal assistance from a tax attorney or a tax law firm. They will guide and help you the best way.
What If You Owe More Than You Can Pay?
In any case, if you owe more than you can pay or you are unable to pay the full amount of your due returns, then you can request an extension of 60-120 days. This is the special provision for special cases. You can make a request either through an online payment agreement application or by calling at a toll-free number. You can also choose the Installment Agreement or Offer in Compromise. If you don’t have enough understanding of these provisions, you should look for unfiled tax returns help.