I know its bad but I failed to file my income tax this year what should I do?

Answer 1

Go fill out an extension and send it in immediately. It give you until Oct 15 to file. You will probably still get hit with fees since you are late filing the extension but thats not so bad.

Here is the linik for where you can get an extension form form the IRS:

http://www.irs.gov/formspubs/article/0,,id=98155,00.html

Of course you will need another extension form for your state too.

Answer 2

It is too late to file for an extension. However, you can still file your return electronically and receive any refund due in 8-15 days.

If you do not owe taxes, there will be no penalty or interest charged.

If you do owe taxes, there will be interest charged, and there will be a penalty. The failure to file penalty is 5% of the tax due on the return per month, up to 25%. So file it right away even if you cannot pay. Filing will stop the penalty, which is much more than the interest charged.

Answer 3

First thing, don't panic...although it is adviseable to file by the 15th of April (or the next business day if the 15th is a week end or a holiday), it's not a big deal if you're late a couple of days or months AS LONG (and I stress it) that you don't owe them anything for the year that you're filing for.

Let's assume that you don't owe them and that you're getting a refund:
if that's the case, you can file electronically until October 15th of this year. After that date, you would have to send a paper return and it will take about 4-6 weeks to get your refund. If you decide not to file this year for tax year 2006 (TY2006), you may file 3 years after that and you're guaranteed to get your refund (again assuming that you are due a refund). After the 3 years period, you relinquish your right to claim that refund and it belongs to the IRS.


Let's assume that you will owe them for TY2006:
then....you're screwed...ok maybe not. What will happen, you will get charged penalties and interests on the principal (starting from April 15th) that you owe them until you finish paying that debt just like a credit card. Keep in mind that if you owe them, filing an extension is not going to help you because the purpose of the extension is to give you extra time to file NOT extra time to pay. If you can't pay the debt fully, you might try and make arrangements to pay them a certain amount monthly or quarterly. If you decide not to pay, they might keep a portion or all of your refund when you file for TY2007.

What to do:
first get your finances in order. Gather all your W-2s, 1099 and all the other wages that you've earned for that year. DON'T FORGET bank interests, investment income, retirement distributions....and all other forms that you might have received (if you forget one of them, you will have to file an amendment). Depending on your income, you might want to try and claim some "legally deductible" expenses (they call it to itemize your deductions) to lower your income and maximize your chances of getting a higher refund. Make sure though that you have a way to prove the expenses that you're claiming.

Hope this helps.

Answer 4

File them. If you're getting a refund or are breaking even, you won't have to worry about interest or penalties. And you still can enjoy that refund check.

But if you owe, they'll find you. Your employers sent a copy of the W-2's they sent you to the IRS, and if applicable your state or local taxing authority. And the longer you wait, the more the penalties and interest add up until you settle up.

Someone might tell you to file an extension, that had to be done by April 17.

Answer 5

You need to file the form - if you don't owe taxes you may not end up with any penalty, but if you do owe, you will have some, but not as bad as if you blow it off until winter or next year (or never do it).

By the time you take deductions and such, you might be okay. Buy a tax program for $20 (might be nearly free now, so long after filing date), it'll help you through it.

Answer 6

You need to file it. There is no limit on the amount of time that the government can come after you for not filing and paying your income taxes.

Answer 7

Do it TODAY. Don't wait. You'll owe some extra interest and probably a small penalty. After you file, you'll get the bill for whatever else you will owe them.

If you don't file, that's tax evasion and you can go to jail for that.

Answer 8

File it as soon as possible.

If you have a refund coming, you won't be penalized on your federal taxes. If you owe, there will be penalties and interest, but they will keep accumulating until you take care of your problem.

State rules differ for when you'll be penalized for late filing.

Answer 9

Just go ahead and get them filed. If you are due a refund, then there is no penalties or interest.

However, if you owe, then you will be assessed penalties and interest.

Answer 10

nicely hun, if I have been you, i would not positioned this off next twelve months!!! i might supply a "tremendously counseled" Tax Preparer a decision, and ask them what your think to do, and tell them the certainty! And, they might supply you an IRS, telephone quantity which you will call, or they might do it for you......I dont remember what my brother ended-up doing first....yet, if this provides some sense of alleviation, remember its purely some years, which you owe! attempt a pair of many years, my brother owed back pay to the IRS!! And replaced into scared for some years that he replaced into going to pass too reformatory over it, so i might definately handle it, next twelve months!! earlier it gets too being twelve months after twelve months, until its many years, like my brother, you comprehend!! The IRS replaced into taking it immediately out of his paycheck's for years, and now and back they nonetheless mess with him over it.....even nonetheless he's paid up!!! My brother did no longer think of he owed them (i think) because of the fact he did no longer have any teenagers, and my sister-in-regulation, continually filed unmarried, or something to that result......So, he somewhat began doing it out of in simple terms in simple terms being nieve approximately it, and then found out he replaced into doing it incorrect some years later and that he'd owe and doubtless even might desire to do "Federal Time" over it.....yet my brother made "vast greenbacks" so i would not trouble too plenty, until you have actually made that telephone call and be arranged to have them take it immediately out of your exams too, hun!! yet, it extremely is advantageous i might start up saving for it, now, if I have been you!! So, that it would not harm you financially too plenty, paying them back I advise!! conceal your Butt, approximately it for once you're making that decision next twelve months!!! stable success to you!!