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I will owe money on my '06 return...can I wait to file it next year with my '07? What are the statue of limitations in regards to filing?

2007-04-07 17:56:17 · 12 answers · asked by Tiffany C 2 in Business & Finance Taxes Other - Taxes

12 answers

Sure you can put it off. But they'll expect you -REQUIRE you, actually- to pay a penalty plus interest, and it's not cheap. It's been said that there really isn't any limit on how far back they can go if you owe back taxes. I put off my tax return one year, because of some complications, and each year after that it just snowballed. But they contacted me just before the time limit ran out for them and I filed for several prior years at one time. I don't recall how long that was, only that there WAS a limit. Don't underestimate them, though. They WILL come after you just before the limit's up! My advice is to start your own home business, take a big loss, so you have a net operating loss on your '07 self-employment return, then carry back part of that loss to '06. You'll still have a penalty for filing late, but with the loss carry-back, they can't charge interest on nothing owed!

By the way, you didn't get this from me...

2007-04-07 18:14:29 · answer #1 · answered by BuddyL 5 · 0 0

Don't confuse failure to file a return with making the taxes not due till later. The tax owed is due 4/17/07 regardless of when you finally submit the '06 tax return.

Your best bet is to file now, and submit payment with your return for as much of the tax owed as you possibly can scrape up. IRS will charge you interest (and maybe some penalty?) for unpaid taxes but the penalty for not filing will not happen since you did file the return.

With IRS, it is better to pay now than pay later - always.

2007-04-08 02:02:33 · answer #2 · answered by Single4Good 2 · 0 0

There is no statute of limitations for filing. The federal government can prosecute you for tax evasion whenever they want to whether it's next year (assuming you don't file this year) or whether it's 25 years from now. That being said, you CAN file them next year with your '07's, but you'll have to pay more than you owe now because you'll be filing so late and they charge a penalty for that. I don't know why you would want to pay a penalty...if the amount you owe them is more than you can pay in a lump sum, you can make arrangements for partial payments in most cases. The penalty is really not worth it -- you'll just end up forking over a lot more money in the long run.

2007-04-07 18:09:30 · answer #3 · answered by Anonymous · 0 0

You're joking, right?? It's a few days past April Fools day now, you know.

Of COURSE you MUST file. And PAY any tax due!

There is NO statute of limitations on filing. An open tax year (one where a return was required but not filed) is open FOREVER. The statute of limitations clock doesn't even start ticking until a return is filed or the filing deadline for the return, whichever is later.

2007-04-07 23:14:26 · answer #4 · answered by Bostonian In MO 7 · 1 0

if he did not owe taxes for the years he did not file he will be able to get his refunds. more than likely at his age, he was taxed at a high enough rate that he would get a refund unless he made a large amount of money tell him to get on it. If he does owe - the problem will only get bigger and bigger because penalties and fees accrue at a horrific rate. he is probably just worried about nothing and just needs to take the plunge and do it. He should go to H&R Block - they can do it for him and they have seen this all before so there is no need to be embarrassed.

2016-04-01 03:06:15 · answer #5 · answered by Anonymous · 0 0

Yes, you can wait, but then you not only run the risk of the IRS assessing the tax first, but you would have to pay penalties and interest on the amount you owe for 2006. You would be better off filing now and paying what you can with your return. You can make payment arrangements with the IRS on the balance.

2007-04-07 20:24:53 · answer #6 · answered by Amy F 3 · 0 1

Heck ya you've gotta file. If you really can't afford to pay immediately, then try to get an extension. Save up the cash and start a payment plan.

Also, try paying a little more in taxes every month so you don't get hit the same way next year...

2007-04-07 18:06:33 · answer #7 · answered by Anonymous · 1 0

No,, you can't file it with your 2007 taxes.

if you don't file you will have a penalty for not filing,
if you file after April 17th you will have a late filing penalty
if you don't pay all the tax you owe you will pay interest and fines.

statute of limitations?
there are none,,

2007-04-07 18:20:27 · answer #8 · answered by Jo Blo 6 · 0 0

You HAVE to file every year. If you do not you take the risk of being thrown in jail for non payment of federal taxes (it is a federal offense). You can however apply to the IRS for an extention on your taxes and there is also a payment plan option as well. I suggest you go to www.irs.gov and research your options there.

2007-04-07 18:01:19 · answer #9 · answered by Anonymous · 0 0

No you can't. Returns must be filed annually.

2007-04-07 17:59:49 · answer #10 · answered by SGElite 7 · 0 0

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