Unfiled Tax Returns: Filing Taxes Late In Minneapolis, MN
Over 15 million households that generate income fail to file a federal tax return, and most of these households have no reason to have an unfiled tax return. Your age and income are the crucial factors that determine whether you should file a tax return or not.
If you are self-employed and managed to make more than or $500 in the year, then you need to file a tax return. If you work for another individual (W-2 Employee), you must be wondering how to file your tax return with regards to your variable income.
The IRS offers yearly 1040 instructions which depict the minimum income filing requirements for your age and filing status for the given year. To learn more about state taxes you should visit your local state’s income tax revenue website, this also proves helpful because there are different filing requirements for each state.
Penalties and Consequences of Unfiled or Delinquent IRS or State Tax Returns
You can face quite a few penalties and interests if you fail to file your tax returns within the designated time period. Each state is different and imposes different penalties and consequences for filing in tax returns late, but during the collection phase in any state, the penalties IRS imposed are stiff and financially unbearable.
Penalties like tax liens and tax levies may also be incorporated by the state or the IRS. Continue reading to gain a better understanding of the consequences and penalties of failing to file a tax return on time and what steps are in your best of interest to take.
How to File Old State Tax Returns or Unfiled IRS
There are a few guidelines that you can follow if you decide you don’t want to pay excessive penalties or face horrible consequences. The IRS will send you a completed tax return or a substitute tax return for you. This document will be sent to your last recorded or known address asking you to sign and return it. Instead of signing or following the instructions, file for a tax return and send it to the IRS.
The Penalty For Not Filing A Tax Return
The standard fee for failing to file your tax return is 5% of the tax liability, and it reaches all the way up to 25% of the total tax liability. Understanding how these penalties are charged can be extremely helpful. Most of the penalties can easily be nullified by providing a reasonable cause as to why you couldn’t make it.
Unfiled IRS Tax Return FAQ
The IRS tax code is not only difficult and complex, but it is also excessively long and grows infinitely. Without the assistance of a tax software program or a tax adviser, filing your taxes has become almost impossible. Find out answers to commonly asked questions about filing tax returns along with unfiled IRS tax returns.
Contact us today for help with your unfiled tax returns!