Late and Past Due Taxes
Sometimes we get caught up in life and we miss the deadline to file our taxes. Below are some common concerns regarding filing late taxes. Quinerly Financial Group can help you file your past due tax returns and navigate through the IRS system to ensure all necessary information and forms are received. Keep in mind, It is always best to file your taxes on time. Even if you will owe money and cannot pay in full, filing on time is still the best option.
5 Reasons to File Your Past Due Returns Immediately
Claim a Refund
If you are owed an income tax refund and do not file your tax return you risk losing your refund. If you are due a refund you must file your return to claim it within 3 years of the return due date. You could be at risk of losing tax credits such as the Earned Income Credit as this same rule applies.
The IRS will hold income tax refunds when records show that one or more return is past due. The IRS will hold tax refunds until the past due return is received or an acceptable reason as to why the return was not filed is provided.
Social Security Benefits
Lets say you are self employed and you do not file your federal income tax return. The IRS will not report the self employment income that you earned to the Social Security Administration. Without filing the return the credits toward Social Security retirement or disability benefits will not be applied.
Failing to file your returns can tremendously effect your ability to obtain a loan. Loan approvals could be delayed or even denied. In cases such as purchasing a home mortgage lenders/brokers will require a copy of a filed tax return to be submitted. This is also the case in refinancing a home, or applying for federal aid for higher education.
What if I owe more than I can pay?
You've ran the numbers and it looks like you will owe more than you can afford to pay! The first thing you should do is make sure you have Quinerly Financial Group handle your taxes to ensure everything is being done the correct way. If you've already done that we can help you request an additional 60-120 days to pay. The IRS provides an online application that you can use to request this additional time. If you need even more time to pay we can help you set up an installment agreement with the IRS or see if you qualify for an offer in compromise. An offer in compromise can help you settle your tax debt for less than the full amount owed. It is a legitimate option for those who can't pay their taxes in full or doing so creates a financial hardship.
Filing you taxes on time is always the best bet. However there are always unique situations. Contact Quinerly Financial Group for further assistance.