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Why You Should File Past Due Tax Returns

Why You Should File Past Due Tax Returns

Filing the taxes can be difficult for the people who work or own a business, and they find themselves panicking at the end when they have to mention every little detail on the form for IRS to identify the source of income and the legal process of owning a business in their country. 

If you forgot to file the tax returns, then it is never late to send the past due tax returns with filling the form the same way and send it no matter what the time of the year it is. IRS just need to receive the past due to tax returns, so there is no specific date for it. If you got a legal notice by IRS, then make sure to file the tax returns on the same address in a timely manner. Many people take it lightly, but if you do not file the taxes on time or past due tax returns, then it can lead to the trouble in the future which you are not able to escape.

Reasons for Past Due Tax Returns 

Here are few reasons why you should file the past due to tax returns:

  • There are some penalties and charges which will be on your tax return number which you will have to pay if you make it too late. The late payments cost heavy to the individuals for no reasons, so instead of forgetting the date, it is better to set the reminder on your phone, so you do not miss out on the important work which needs to be done on time. 
  • When you do not file the past due to tax returns, you will not be able to get the tax refund money which can be the main source of your savings or other expenses which you have been waiting on. You have the limit up to 3 years to file the taxes to get the refund back. The checks are with the IRS until the individuals file the past due tax returns along with the valid reason why they do not get filed on the specific given date. 
  • If you have your own business and you do not have to file the tax return, then your earnings will not be reported to the Social Security systems. There will be no credit in the accounts, or you will not be able to receive the long-term/retirement benefits in the future. 
  • If you look forward to getting a loan such as a mortgage, motor loan or student loan you will not be able to get it instantly. There will be a delay from the bank with checking your background on the tax returns which will make your process delayed, or even the date may pass. It will be a loss for you if you just do not file the tax on time or make it too late to receive the tax return. 

If you find yourself in trouble regarding the tax payments, then you can always talk to the tax preparer to help you with the process. When you are not able to pay the money which you owe but will be getting it within two months, then you have the liberty of filing the tax without any penalty or charges. 

You can also ask for more time by contacting the IRS or by accessing the right professional tax preparer who can help you qualify for the request, so it gets made in your favor. Sometimes, the IRS sends the notice, and you receive it after you have filed the past due tax returns, you can then contact the IRS immediately with sending the copy of the file which you have sent and claim your rights. So before it is too late and you panic, make sure to file the taxes on time or if not, as soon as possible when you realize that the date has passed.