What if I didn't file my 2012 tax returns and I know I owe money

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idonthaveaname
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What if I didn't file my 2012 tax returns and I know I owe money

Postby idonthaveaname » Thu Jan 16, 2014 2:02 pm

Is it too late or can i just put this information into my 2013 return from 2012?


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Postby MemberSince99 » Thu Jan 16, 2014 2:24 pm

I believe legally you will have to file with the IRS and they will charge you a penalty for filing late. I don't think you can just add it into 2013 the way you are thinking.

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djrez4
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Postby djrez4 » Thu Jan 16, 2014 3:23 pm

idonthaveaname wrote:Is it too late or can i just put this information into my 2013 return from 2012?


No, you can't. You have to file a separate 2012 return.

The IRS may assess two types of penalties: Failure to File and Failure to Pay.

  • If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.
  • The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. The IRS will work with you.
  • The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
  • If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
  • If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.
  • If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.
  • If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
  • You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
http://www.irs.gov/uac/Failure-to-File-or-Pay-Penalties:-Eight-Facts

I suggest you take care of it sooner rather than later. Tax debt tends to grow. The IRS can file a lien against your social security number that reports to your credit. They can also levy bank accounts and wages.

If you can't take care of it immediately, file the return and ask for a payment plan.
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idonthaveaname
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Postby idonthaveaname » Thu Jan 16, 2014 3:30 pm

Thanks for the info. I realize I can't do this online but any suggestions as I don't wanna do it myself and screw up all the math. Also, can i do an offer in compromise to settle?

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Postby Obi-dan » Thu Jan 16, 2014 10:52 pm

Djrez4 pretty much said it all. I would just add that I see many people who don't file Current Taxes because they think they can't until previous taxes are filed. This is not true. File this year no matter what you end up doing with you 2012 return. I have teach personal finance and I have seen inertia on this issue lead to big problems. If you need tax help, find a VITA approves site to help for free rather than pay a preparer.

My two cents.
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Postby chas0039 » Sat Jan 18, 2014 5:39 pm

Just an additional piece of info, if they owe you money, you have 3 years to file or they keep the refund.

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Postby MemberSince99 » Sat Jan 18, 2014 6:18 pm

chas0039 wrote:Just an additional piece of info, if they owe you money, you have 3 years to file or they keep the refund.




Another example of fairness in action by the Infernal Revenue Service.

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Postby samhradh » Sat Jan 18, 2014 10:35 pm

MemberSince99 wrote:Another example of fairness in action by the Infernal Revenue Service.


There's statute of limitations on most any legal matter. Part of life.
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Postby djrez4 » Sat Jan 18, 2014 11:07 pm

I'm guessing his comment stems more from the fact that the statute of limitations may be three years when they owe you money, but it's seven years when you owe them.
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Postby MemberSince99 » Sat Jan 18, 2014 11:18 pm

Bingo. Another example is when the states say they don't have the money to give you what they owe you for your tax return and they don't pay you a penny in penalty interest, but if you are late paying them you sure don't get the same courtesy. And it's kind of funny they don't "have the money" since they took it from you in the first place, don't ya think? Try giving THEM that excuse sometime and see how far it gets you.



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