Don't Avoid Filing Past Income Taxes

December 8, 2008

5 Bad Reasons to Not File Past Income Taxes

1) I can do my 2007 taxes next year. You could, but you'd be missing out. When you finish your 2007 federal tax forms, you can stop worrying about interest and fees, and possibly even collect a refund! Your 2007 Federal tax returns will never be more rewarding -- every day you don't finish is a day you can't take advantage of your refund (if you get one) or stop paying interest (if you owe it).

2) The IRS has forgotten about my 2005 Federal tax returns. They may have, but why risk it? We all know that process: "What happens if I file my taxes late?" turns into "I need to file my taxes late" which turns into "Why should I still worry about my late taxes?" after a while. But during that while, the IRS will spend time looking for people whom it can collect money from. It's better to pay them and not worry about it than to have this stay a problem.

3) It's not worth finishing up my 2006 taxes. It almost always is. People who file a past income tax return, rather than filing at the normal deadline, are more likely than average to be owed a refund. So your 2006 tax preparation might pay better than your day job: getting a refund for just a few hours of work (or much less!) is quite a deal.

4) I've already missed the 2007 Federal income tax filing dates. Even if you've missed the dates for filing, the sooner you take care of it, the better. Your 2007 Federal taxes aren't going to disappear, so the faster you finish up your 2007 Federal tax worksheet, the better off you'll be. Your 2007 Federal income tax forms aren't too hard to fill out, and with a little help you can be on your way to a great refund (or at least avoiding a big fine).

5) If I could do it online, I'd file my 2006 taxes. E-File is not available, though. If you miss the deadline, you can't e-file. 2006 taxes, for example, are off limits. But why couldn't someone past the deadline file electronically? Late tax returns are not processed the way other returns are, so the IRS requests them in hard-copy form. However, you can fill out your 2006 tax return online and then print up a copy, which you can mail in normally. It's basically e-file plus postage and paper -- not so bad, after all.