How to File a Past Due Income Tax Return & Payment Plan
If you have a past-due federal income tax return, the sooner you file it, the better off you will be in the long run. The Internal Revenue Service assesses penalties and interest on delinquent tax returns, so filing your return will help minimize the cost. If you didn't file initially because you couldn't afford the tax bill, the IRS offers an installment payment plan.
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Things You'll Need
- Tax return form
- Necessary financial documents
- IRS Form 9465 for a payment plan
Instructions
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Obtain the proper tax return form--either the Form 1040, Form 1040A or Form 1040EZ. You can get these forms at post offices, public libraries and other locations. Forms also are available on the IRS website.
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2
Gather all necessary financial documents, such as your W-2 form, bank statements of interest income, and documents for any deductions you may be claiming, such as mortgage interest, charitable contributions, or interest on student loans. You may need to contact your employer, your bank or others to obtain these documents if you don't already have them.
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Prepare your return carefully. If you itemize, be sure to claim all deductions to which you are lawfully entitled and can properly document. After all, you're going to be subject to penalties and interest for any taxes you owe. Claiming all appropriate deductions will reduce your overall tax liability and limit the penalties and interest on those taxes.
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Complete Form 9465 to request a payment plan from the IRS. The chief reason many people do not file their returns is not having the money to pay the tax bill. The IRS offers an installment plan that allows taxpayers to settle their tax liability over time.
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Sign and file your return and payment plan. Be sure to keep a copy of your return and installment plan request for your records. Keep copies of your financial documents and records, as well.
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Tips & Warnings
An installment plan will allow you to pay your tax bill over time, but it will subject you to penalties and interest. If possible, pay your tax bill in full to avoid these additional costs. The IRS can withhold any tax refunds you are owed if you have delinquent taxes from previous years. The IRS generally does not institute criminal proceedings against people with overdue tax returns, provided they file voluntarily or make payment arrangements.
