MILWAUKEE, Wis. (WSAU) — It’s time for New Year’s Resolutions and the Internal Revenue Service says you should be thinking about getting current on your tax returns.
IRS Spokesman Michael Devine says if you haven’t filed returns for several years for whatever reason, now’s a good time to fix that. “Even if you owe money you can’t pay, file your tax return, because it’s a half a percent for failure to pay. It’s 5 percent for failure to file, and that’s monthly.” It may take a year for the IRS to notice the first time you forget to file, but they’ll figure it out eventually. “So we don’t always know until the documents start coming in from the banks and your employer and the computer goes ‘hey, we got a lot of money that didn’t get a return’. Eventually we’re going to notice.”
Devine says not filing your taxes can lead to other issues, like when you apply for loans or other federal aid. You’ll need to provide documents that you don’t have. “If you need tax information and you haven’t filed, now you have a major problem. Because you have to get current, paying a tax professional to do it right and negotiating. In the long run, it’s going to be much more expensive than just staying current.” But Devine says there are programs in place that you can take advantage of to clear that out and get clean with the Revenue Service. “Think of it like a mortgage. If you don’t pay on it, it’s just going to keep increasing, so get current. I haven’t talked to anybody yet who said they settled their old tax bill, got current on their taxes, and didn’t feel better not worrying about it.”
If you’re looking for help, you can contact your local IRS office.
