Saying that American tax law is complicated is an understatement. There are many things to remember when dealing with tax, and so much so that many people end up creating a mistake when trying to file taxes. Some even end up failing to file altogether, feeling overwhelmed trying to get started filing in the first place. Unfortunately, these actions lead to various issues, such as running into trouble with the law and even losing some money along the way. Regardless, it is a situation you do not want to find yourself in.
With that in mind, how do you ensure that all your tax obligations are met thoroughly? By working with a tax resolution specialist. These experts are all about tackling any tax problems you are facing, such as filing for old tax returns.
That said, should you still bother filing for old tax returns? Yes, and here’s why:
1. You Might Face Penalties for Not Paying Tax
If you plan to avoid filing for old tax returns, chances are you’re doing something illegal. After all, not filing returns is considered illegal, especially if the money you owe is to the government. For that reason, you should file your taxes even if you know you will have trouble paying it. Filing for a tax you cannot afford will lead you to fewer consequences compared to not filing at all. Of course, this doesn’t mean you should avoid filing and paying the tax. You must file the return and pay as much as you can to be able to deal with the smallest amount of interest that you can.
2. You Get a Better Idea of Your Financial Situation
If you avoid filing the tax return outright, you might not have any idea how much you owe, and you won’t also know if the IRS has a refund for you. As such, the earlier you file the tax, the faster you’ll get an idea of where you stand financially. This will help you make better financial decisions from your tax specialists because the tax has been accounted for and implemented into the overall decision-making process. In addition, filing early also helps you stay away from unnecessary consequences.
3. You May Get Some Refunds From the Government
There might be cases where when you finally file for old taxes, you can get refunds from the government. If you are indeed owed a refund, you will not face any penalty if you fail to file. However, you won’t be receiving any money either, so that’s a loss either way. For that reason, regardless of how much you’re making, you should always file a return. Note that refunds are limited to a three-year time limit, so immediately start filing for old taxes!
Filing old taxes is a must if you want to get out of hot water. It is also a must if you want to earn the money you’re owed, should any be owed to you. As such, when filing for taxes, don’t ever ignore any taxes you’ve missed in the past. They will come back to bite you and must be dealt with as soon as possible. If you need to, don’t be afraid to hire a tax specialist to assist you. They can help you file your tax returns properly to gain maximum returns from the effort. This will help you stay in line with tax regulations, saving you plenty of money and keeping you away from trouble.
Axiom Tax Resolution Group are tax resolution service specialists in Birmingham helping companies stay on top of tax obligations to avoid IRS tax issues. If you have any unfiled tax returns you want to address, work with us today!