Identity theft happens when your name or Social Security number is used to file a fraudulent tax return and claim a refund.
Make sure the financial institution routing and account numbers entered on the return are accurate. The IRS might request such records as receipts, bills, canceled checks and legal papers, the agency said, adding that only copies should be sent. Fail to check this box and the IRS has no way to know that you have health insurance; thus, you will be assessed a penalty. Neither underpayment interest nor late-filing penalty apply because both are based on tax owed on the return due date.
"A lot of people - if they owe taxes - they'll either decide to not file or file later on, or they think they can file an extension and that will keep them from having to pay penalties", Clark said.
If you need more than 120 days, you might be able to sign up via the IRS website for a monthly installment plan as long as you pay your tax debt in full. If you don't pay, the amount you owe will be charged interest by the federal government.
Fact: We systematically review all 10 million income tax returns using award-winning technology to detect return errors and to stop questionable returns. Because Emancipation Day is observed in Washington, D.C. on the next business day, the deadline moves to Tuesday, April 18. But the IRS announced that the agency would return any newly filed Offer in Compromise application received on or after March 27 if you didn't file all required tax returns.
Report all your income: You will need all your Forms W-2, Wage and Tax Statements, and 1099 income statements to report your income when you file your tax return.
Let the free MoneyTips Retirement Planner help you calculate when you can retire without jeopardizing your lifestyle. If there is a legitimate reason that you can not, get an approved extension as soon as possible, make the necessary payment of estimated taxes, then work out payment terms with the IRS to minimize any damage. Seek help on deductions, common tax problems, and tips to make your tax filing experience as smooth as possible. An extension of time to file will automatically process when taxpayers pay all or part of their taxes electronically by April 18. In a season that provides the majority of revenue for some tax companies, many do not turn away last-minute returns. How do you tell the difference between a legitimate call and a scammer?
The article What to Do If You're Filing Your Taxes Late originally appeared on NerdWallet. The IRS employees at that line can help you with a payment issue - if there really is such an issue. The complaint alleges that audits of 163 returns prepared by Draper in 2011, 2012, and 2013 revealed that she overstated refunds and understated tax liability on 134 (82 percent) of these returns which resulted in a tax loss of over $275,000.