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| I had taxes taken out but never filed a return so i just read that you can only claim your refunds for the last 3 years. I know i will have penalties but am guessing those penalties won't be covered by what irs owed me in those earlier years? For the last 3 years i would have been owed over $6000. Will penalties eat that up?
thanx |
Follow-Up Postings:
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- Posted by duluthinbloomz4 (My Page) on Sat, Oct 4, 08 at 19:27
| Lots of information on the IRS website. As you know, You have 3 years to claim a tax refund. Consequently, as you're aware you've got a few years for which you can no longer claim refunds - although you will still owe any back taxes and penalties for those years. You'll know the outcome and how much, if any, of your 6k you'll get back only after preparing your delinquent returns. A few FYIs... The failure-to-pay penalty is calculated based on the amount of tax you owe. The penalty is 0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty. The penalty is calculated from the original payment deadline (the original April 15th filing deadline) until the balance due is paid in full. Interest is calculated based on how much tax you owe. Interest rates change every three months. The interest is calculated for each day your balance due is not paid in full. |
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- Posted by lablover4ever (My Page) on Sat, Oct 4, 08 at 20:28
| hello duluthinbloomz4! Thanx for answering. I am sorry but i get all bogged down in the irs gobble. I have autism which is not an excuse but an explanation why i get confused with so much information. From what i see you do not get penalized in years that you would have gotten a refund. I would have gotten a refund each year. What happened was when i was 18 i won $400 on the lottery and could not figure out where to put that on a 1040 EZ so i just did not do it. Now my brother wants me to get all my taxes squared away but i do not want to ask him to help me if i do not have to. I have now done all my forms on 1040 EZ except the one year when i won the money i used a 1040. My question is since i would have gotten a refund each year will i still have to pay penalties? |
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- Posted by lablover4ever (My Page) on Sat, Oct 4, 08 at 20:42
| I understand that i would not have a late paying penalty but would i still have a late filing penalty? thanx |
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- Posted by lablover4ever (My Page) on Sat, Oct 4, 08 at 20:49
| Good gawd i do not know how i typed $6000 that i would be refunded. It is suppose to be $2000. I am so sorry. |
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| The failure to file penality is a percent of the amount you owe. If you owe nothing, there will be no penalty. For the year you have lottery winnings, you can't use a 1040EZ. You have to use a 1040. Sorry. The lottery winnings go on line 21 with the note "lottery winnings". Right now you can file your 2005, 2006 and 2007 returns and receive the refunds that are due for those years. |
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- Posted by duluthinbloomz4 (My Page) on Sun, Oct 5, 08 at 13:17
| I know that it's a difficult thing for many of us to wade through IRS forms - I've never been able to do my own taxes, basically going numb with all the forms I have to deal with. Since you have a 1040 added to the mix, why not let your brother help you out? Millions of us have to resort to getting assistance - paying for help from accountants or the various tax preparation outfits. |
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- Posted by brody_miasmom (My Page) on Sun, Oct 5, 08 at 18:29
| If you have all the tax returns prepared, you might as well file all of them. They will probably not give you the refunds for the other years, but it is still a good idea to file. What you may not know is that the IRS can file a "substitute for return" for any tax return a taxpayer fails to file. They file these based on information submitted to them by employers and not take into account anything, but the basic deductions. Since you are a 1040EZ filer (for the most part), this would not have a negative impact on you, but if you ever get into a position where you have additional deductions you may be short changing yourself. From here on out, please stay current with your taxes. Should you ever owe money the penalties and interest add up fast. |
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