I didn't file my 2004 taxes, so what should i be expecting as far as fees?

Question

I didn't pay my 2004 taxes, i didn't file for extensions, and i owed money that year. So what should i expect as far as fees and intrest rates? Also i had to personally pay about $30k in medical bills for my own personal injury that year, which came out of my settlement w/ another drivers insurance; so is that tax decuctible?

Answer 1

If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. The penalty is based on the tax not paid by the due date (without regard to extensions).

You will have to pay a failure-to-pay penalty of ½ of 1% (.50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. This penalty does not apply during the automatic 6-month extension of time to file period if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return.

More info:
http://www.irs.gov/publications/p17/ch01.html#d0e7894

Answer 2

Well the Medical Bills would have been deductable had you filed a return in 2004. Unfortunately your three year grace period is up. Ouch.... However if you were reimbursed by the Insurance Company for all your out of pocket Medical Expenses, then you could not deduct that anyway...
Expect an interest rate from the IRS in the 10%-12% range.
Try to negotiate the penalties. If you owed more than 5 or 10 thousand in taxes you didn't pay in 2004, get to a CPA ASAP and DO NOT accept answers here as gospel. A CPA may find you some way to recapture and at least keep you out of trouble.
The few hundred you spend on the CPA will be worth Thousands to you in the long run..............

Answer 3

The penalties and interest could easily double the bill for 2004, or worse.

The medical expenses are NOT deductible since they were covered by insurance.

Answer 4

It starts off from the date the return grew to become into through be filed. Your 2004 grew to become into through be filed by using 4/15/2005. 3 years from then grew to become into 4/15/2008, so which you ignored it by using 11 months and have forfeited the 2004 refund.