| Send it in. If you have delinquent tax returns, the best | | | | entitled to will not be included in the return the IRS files. |
| advice is to send the tax return in to the U.S. Postal | | | | Why You Should File Anyway |
| Service as soon as possible by certified mail with | | | | - Claim additional items you may have missed out on |
| return receipt requested The IRS will send back a little | | | | when the IRS filed a return for you. When the return |
| receipt in the mail a few days later showing the date | | | | you filed is processed, your account will be changed to |
| and time your returns were delivered to them and | | | | show the right figures. |
| who signed for it. Thus, you will have proof that they | | | | - When purchasing a home or financing a business, |
| received what you mailed. Regardless of why a tax | | | | copies of filed tax returns must be submitted to the |
| return was not submitted on time: unprepared | | | | lending institution. |
| emotionally, procrastination, financially can't afford to | | | | - Copies of filed returns are needed for students trying |
| pay taxes owed, it is still crucial to file a return. Not filing | | | | to qualify for higher education loans or federal aid. |
| this year to avoid getting caught because you didn't | | | | - Medicare, Social Security, disability, unemployment |
| send anything last year is not a good excuse either. | | | | compensation, and industrial insurance are computed |
| Un-filed returns will be discovered. The IRS has | | | | based on reported income. |
| improved its database of income transactions, making | | | | - Not filing and getting caught includes consequences |
| it easier for them to identify the people who should be | | | | such as interest and penalties on the original tax bill, |
| filing returns. The IRS specifically looks for people who | | | | one year in jail, and a $25,000 fine ($100,000 for |
| have not filed returns and everyone who has a | | | | corporations). |
| savings account, earns any type of income, or has | | | | Aside from the above benefits, it's best to file a return |
| previously filed returns has a record with the IRS. | | | | because per the Statute of Limitations the IRS has no |
| What Will Inevitably Happen If You Don't File | | | | limit on when it can collect any outstanding balances |
| - IRS will send a series of letters demanding payment. | | | | but taxpayers are only allowed 3 years to claim a |
| - You can send your return or an appeal. | | | | refund. After the 3 year period, the U.S. Treasury |
| - If neither is received, the IRS will file a substitute | | | | collects the unclaimed money and the person forfeits |
| return for you using the highest tax bracket. | | | | the refund. |
| - Additional exemptions or expenses you might be | | | | |