How to Handle Filing Late Tax Returns

Filing late tax returns sounds intimidating, but is beneficial in virtually all cases. Most working citizens or those receiving some form of benefits income are required to file both federal and state wage documents. This applies to residents of states such as California as well as nonresidents who work in a state during a specific year. Failure to comply with such paperwork regulations can carry a host of potential penalties, including late fees, fines, and in some cases even criminal prosecution. Filing late tax returns should happen as quickly as possible, and there are resources to help in this process.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Wage information (usually W2 and 1099 forms).
• Appropriate documents or software to prepare your package.
• Envelopes and postage for mailing.

1. Gather your wage or benefits information, which is usually reported to you on a W2 form or 1099 form, before filing late tax returns. If you do not have this information readily accessible, there are several options to exercise. You can call your employers for copies of the forms or contact the Internal Revenue Service at 1-800-829-1040. If you need to get state deduction information, contact the appropriate taxation department for the state in which you worked.

2. Collect any possible deductions you might have, such as medical bills, college tuition, day care payments, interest paid on a house or student loan, and Individual Retirement Account (IRA) contributions. The IRS usually has records of interest paid on student loans, paid college tuition bills, and IRA contributions but it is better to seek out as much information on possible deductions through your own records before filing late tax returns. Such deductions can decrease any amount owed or even lead to an unexpected refund check.

3. Visit the website of the appropriate federal or state agency to download instructions and forms applicable to the appropriate year(s). You may decide to pursue purchasing preparation software through companies such as TaxACT or TurboTax. Follow the instructions for filing late tax returns for the federal government and/or the appropriate state.

4. Filing late tax returns in actuality is the next step. The IRS as well as most states does not permit electronic filing of documents that are more than six months overdue. If you used preparation software, you can print and mail the forms. If you used printed forms from the Internet, ensure your handwriting is legible. You may wish to use certified mail or some other trackable form of delivery to prove you sent the packet.

5. Make arrangements with the appropriate agency to pay any funds owed if necessary. You may be able to reach an offer of compromise agreement or installment payment plan.

Tips & Warnings

• Remember that if you are owed a refund from the IRS or a state agency, you usually cannot get it unless it is less than three years old.
• Do not hold off on filing late tax returns because you are unable to pay an owed amount. There are programs available to help those with financial problems. Submitting your documents as quickly as possible will prevent any possible criminal prosecution for failure to comply with any applicable financial laws.

Resources

• Filing Late Tax Returns - Internal Revenue Service (IRS)