for ex. you don't file one year and the next you do but don't use last yrs w2. whether or not you are due a refund, you have 3 yrs to claim it or forfeit it. well, if you, unfortunately, owe, would you still have to pay if your 3 yrs have expired on this particular tax season? if you can't collect, why should they be able to after the 3 yrs have expired?
2007-01-18 03:44:17 · 6 answers · asked by angella t 1 in Business & Finance ➔ Taxes ➔ United States
You don't have three years to file. You need to file every year. If you don't file on time and you owe money then there is a failure to file penalty and interest that will be assessed by the Treasury. This cost can be as much as 50% of the amount you owe.
If you don't woe them then you are giving them an interest free loan for the time they hold your money.
The three years is the statute of limitations for them to audit your return. If you file late they still have three years from the date you file to audit the return. If you don't file the three year statute of limitations never starts to run and they can come after you for the return. You are always better off filing each year
2007-01-18 04:15:36 · answer #1 · answered by waggy_33 6 · 2⤊ 0⤋
If they had written the law up that way I can imagine that many more people will not file any taxes in hopes that they do not get get before the three years is up. As a result the govt brings in less revenue and somewhere along the line us law abiding taxpayers will see tax hikes to make up for the slackers. Why make it easier for people to avoid paying taxes?
2007-01-18 03:56:04 · answer #2 · answered by glibby3 2 · 0⤊ 0⤋
Please listen to Waggy! YOU DO NOT have 3 years to file taxes...you cannot use 2005 w-2's to file 2004 or 2006 taxes.
You need to file every year by April 15th to avoid penalties and/or interest.
Tax laws were written for a reason...
2007-01-18 17:05:51 · answer #3 · answered by Weetie 3 · 0⤊ 0⤋
Nope. That is the incentive for you to file on a timely basis. If you are due a refund, why wouldn't you file a tax return to claim it?
2007-01-18 05:37:58 · answer #4 · answered by jseah114 6 · 2⤊ 0⤋
Unfortunately no.
Its like this... The IRS wants their money now. If you owe, they want to be paid immediately. Where as if they owe you money, they will take their sweet time.
There is no statute of limitations as far as the IRS is concerned. Conversly, it ONLY applies if you owe, NOT if the IRS owes you.
2007-01-18 03:56:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Because, that's they way congress wrote the law.
2007-01-18 03:51:14 · answer #6 · answered by Wayne Z 7 · 0⤊ 0⤋