Back Taxes - It is Never Too Late to Pay
Taking care of your back taxes is a responsibility the IRS requires of all tax payers that are late. If you have not filed in years the IRS will still accept your late tax forms. If you do not have copies of your past tax documents you can ask the IRS for copies for free.
Preparing your taxes from previous years can be made easier with old software that is outdated. Past years software for doing Federal taxes is still available and cheap. Once they are prepared make sure you file them with the IRS. There is a chance you could receive a refund.
There are IRS statutes of limitations. For a refund you have three years from the due date to receive a full refund. If the IRS wants to audit you they can only go back three years and if you owe back taxes you have ten years to pay them off. These limitations are law and have to be adhered to by not only you but the IRS.
There are some limitations to filing late. All of your late returns need to be done on a paper form. There is no electronic filing when your tax forms are a year late or more.
If you owe more than one year of back tax returns then they should be filed separately. This will help prevent a mix up at the IRS office. You will still be responsible if the IRS makes a clerical error and losses one or more that are all mailed together. When mailing in your late tax returns, use certified mail. This will be legal proof you did mail them to the IRS.
One little known fact about late filing. If you are owed a refund there is no penalty for filing late. You are also entitled to the interest on the money that the IRS owes you.
But it is best to stay out of tax problems and file your back taxes as soon as possible.
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