How To File Your Return
For accurate and efficient processing, the Department strongly recommends taxpayers use an electronic eFile option to file their returns.
For taxpayers filing using paper forms, you should send us…
- Your North Carolina income tax return .
- Federal forms W-2 and 1099 showing the amount of North Carolina tax withheld as reported on Form D-400, Line 20.
- Federal Form 1099-R if you claimed a Bailey retirement deduction on Form D-400 Schedule S, Line 21.
- Form D-400 Schedule S if you added items to federal adjusted gross income on Form D-400, Line 7, or you deducted items from federal adjusted gross income on Form D-400, Line 9.
- Form D-400 Schedule A if you deducted N.C. itemized deductions on Form D-400, Line 11.
- Form D-400 Schedule PN if you entered a taxable percentage on Form D-400, Line 13.
- Form D-400 Schedule PN-1 if you entered an amount on Form D-400 Schedule PN, Part B, Line 17e or Line 19h.
- Form D-400TC and, if applicable, Form NC-478 and Form NC-Rehab if you claimed a tax credit on Form D-400, Line 16.
- A copy of the tax return you filed in another state or country if you claimed a tax credit for tax paid to another state or country on Form D-400TC, Line 7a.
- A copy of your federal tax return unless your federal return reflects a North Carolina address.
- Other required North Carolina forms or supporting schedules.
How Do I File My 2016 Taxes Late
File all tax returns that are due, regardless of whether or not you can pay in full. File your past due return the same way and to the same location where you would file an on-time return. If you have received a notice, make sure to send your past due return to the location indicated on the notice you received.
Can The Irs Go Back More Than 10 Years
As a general rule, there is a ten year statute of limitations on IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed. Subject to some important exceptions, once the ten years are up, the IRS has to stop its collection efforts.
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Nonresident Athlete Individual Income Tax
A nonresident individual who is a member of the following associations is considered a professional athlete and is required to electronically file a Louisiana income tax return, IT-540B reporting all income earned from Louisiana sources:
- Professional Golfers Association of America or the PGA Tour, Inc.
- National Football League
- East Coast Hockey League
- Pacific Coast League
Income from Louisiana sources include compensation for the services rendered as a professional athlete and all income from other Louisiana sources, such as endorsements, royalties, and promotional advertising. The calculation of income from compensation is based on a ratio obtained from the number of Louisiana Duty Days over the total number of Duty Days. Duty Days is defined as the number of days that the individual participated as an athlete from the official preseason training through the last game in which the individual competes or is scheduled to compete.
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Nothing is certain but death and taxes, quipped Benjamin Franklin. Indeed, many people dread Tax Day even more than death since Tax Day comes every year. If youre one of the many Americans who have fallen behind on their tax filings, learn how to pay your back taxes and resolve your issues.
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Questions About Not Filing Taxes Reach Out To An Attorney
The interest and penalties on back taxes can be substantial. If it’s likely that you owe money, it’s a good idea to talk with an experienced tax attorney before filing your past due returns. An attorney can negotiate with the IRS or state tax agency and set up a payment schedule you can reasonably meet. It may also be possible to reduce the fines and fees assessed against you.
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Failure To File Taxes
If you fail to file your tax returns on time you may be facing additional penalties and interest from the date your taxes were due. Failure to file or failure to pay tax could also be a crime. The IRS recognizes several crimes related to evading the assessment and payment of taxes.
Under the Internal Revenue Code § 7201, any willful attempt to evade taxes can be punished by up to 5 years in prison and $250,000 in fines.
For most tax evasion violations, the government has a time limit to file criminal charges against you. If the IRS wants to pursue tax evasion or related charges, it must do so within six years, generally running from the date the unfiled return was due.
People may get behind on their taxes unintentionally. Perhaps there was a death in the family, or you suffered a serious illness. Whatever the reason, once you haven’t filed for several years, it can be tempting to continue letting it go. However, not filing taxes for 10 years or more exposes you to steep penalties and a potential prison term.
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Remember That The Irs Will Catch Many Errors Itself
For example, if the mistake you realize you’ve made has to do with math, it’s no big deal: The IRS will catch and automatically fix simple addition or subtraction errors.
And if you forgot to send in a document, the IRS will usually reach out in writing to request it.
If the issue is a small one, the best thing you can do is wait until the IRS has fully processed your initial tax return. At that point, you will be able to see if the IRS simply corrected the error or has asked you to submit more information.
And Kazenoff says it’s OK to cash the refund check from the original return before receiving any additional refund that may be due to you.
“You really should wait until that first return is processed because you want it to go through the system,” says Kazenoff, who previously worked as a senior tax attorney with the Office of Chief Counsel at the IRS. “Better to wait for it to get processed.” The IRS says that most returns are processed within 21 days.
If your error means you actually owe more to the IRS, the process can be a little more complicated. But for most people, it’s still manageable. Read on for what to do if you have a bigger tax mistake to solve.
Final Thoughts: Amending Tax Returns
You can amend your tax returns if youve made an error related to filing status, income, deductions, or credits.
So how far back can you amend taxes?
You are able to amend taxes up to three years after filing the original return or two years after you paid income tax .
Doing so can ensure youre paying the appropriate tax balance and earning the refund you deserve.
Now you know all about tax return amends. What about figuring out how much you actually owe the IRS? !
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Qualify To Claim And Receive Refundable Tax Credits
Taxpayers can get current and prior year tax forms and instructions on the IRS.gov Forms and Publications page.
Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 should request copies from their employer, bank or other payer.
Taxpayers who are unable to get missing forms from their employer or other payer can access their tax records including transcripts of past tax returns, tax account information, wage and income statements, and verification of non-filing letters by:
- viewing their tax records in their Online Account
- requesting their transcript using the Get Transcript Online tool, or
Failure To File Exceptions
Although the IRS generally will only go back a couple of years, there are instances that will allow the IRS to go back an indefinite period of time. If you dont file a tax return at all, there is no statute of limitations for the IRS to audit you. This gives you little recourse since you are obligated to file a tax return each year by the mid-April deadline. If you cant file on time, its important to ask for an extension. You can do so in a matter of minutes using the IRS e-file system.
Another instance that eliminates the time limit on IRS previous tax returns is if you filed a fraudulent tax return. In addition to giving the IRS the right to go back through your records for countless years, this also could put you at risk for fines of up to $100,000 or imprisonment for up to three years.
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Negotiate Your Tax Bill
If your tax assessment is too high, you may be able to negotiate a better deal. Penalties may represent 25% of what you owe to the IRS. Getting these removed can make a real difference. File Form 843 to request an abatement of taxes, interest, penalties, fees, and additions to tax.
You might consider a Partial Payment Installment Agreement where the IRS agrees to accept less than the total you owe. The IRS will only agree to a PPIC if it’s clear that the monthly payments you can make will not cover your total taxes due for many years.
Another option to reduce your total tax liability is an offer in compromise . If the IRS accepts an OIC, it acts as an agreement between a taxpayer and the IRS to settle a taxpayer’s tax liabilities for less than the full amount owed. If you can fully pay your liability through an installment agreement or other means, you won’t generally qualify for an OIC.
Why Should You Address Your Back Taxes
If you receive income legally, the IRS probably already knows about it employers report payroll details directly to the tax authorities. Even if your income is obtained illegally or goes unreported, you must still pay the appropriate taxes.
There are significant penalties for unpaid taxes in addition to potential jail time. The IRS levies a Failure to File Penalty of 5% of your unpaid taxes for each month or part of a month that your tax return is late. It also assesses a penalty of 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid.
The IRS can file a levy, allowing it to garnish a portion of your wages, seize money from a bank or other financial account, and sell your vehicle or other personal property to pay your debt. The IRS can also file a Notice of Federal Tax Lien, a public record that notifies current or potential creditors of your outstanding tax debt. In the short term, a tax lien can impact your ability to get a loan, mortgage, or other line of credit. If your tax debt remains unpaid, the IRS can take ownership of the liened property.
If you have significant delinquencies, the IRS may refer your debt to the State Department which can deny your application for your passport.
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Why You Should File Back Taxes
Filing back tax returns could help you do one or more of the following:
1. Claim a refund
One practical reason to file a back tax return is to see if the IRS owes you a tax refund. While many have federal income taxes withheld from their paychecks, sometimes too much money is withheld. In these cases, filing a tax return could result in a tax refund that puts money in your bank account.
2. Stop late filing and payment penalties and interest
Filing a tax return on time is important to avoid or minimize penalties, even if you can’t pay the balance you owe. If you don’t file your return, you may have to pay an additional 5% of the unpaid tax you were required to report for each month your tax return is late, up to five months. Minimum penalty limits can also apply.
The IRS assesses another penalty for a failure to pay your taxes owed. If you do file on time, but you can’t pay what you owe in full by the due date, you’ll be charged an additional 0.5% of the amount of the tax not paid on time for each month or part of a month you are late. These fees will accrue until your balance is paid in full or the penalty reaches 25% of your tax, whichever comes first.
The IRS also charges interest on overdue taxes. Unlike penalties, interest does not stop accruing like the failure to file and failure to pay penalties.
3. Have tax returns for loan applications
4. Pay Social Security taxes to qualify for benefits
Criminal Consequences For Not Filing Tax Returns
People may get behind on filing taxes for any number of reasons. They may have had a death in the family or suffered an illness. Before they know it, several years have passed and perhaps they are too afraid or don’t know how to make things right with the IRS. While this can be tempting to ignore, unfiled tax returns can lead to criminal repercussions, like high penalties and even time behind bars.
Evading one’s tax assessment and payment can lead to a prison sentence of up to five years and fines of up to $250,000. However, the IRS has a time limit for filing criminal charges against someone committing evasion. It must file within six years from the due date of the unfiled tax return. Those who willingly file the missing returns on their own rarely receive criminal charges.
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So You Ran A Little Late And Forgot To File A Prior
Are you wondering if you can file a tax return all the way back, say, 6 years? The answer is yes, you can! This should not be confused with e-filing. The IRS has electronic filing available through October of the year your tax return is due. After that, taxpayers must paper file their returns no exceptions. The good news? Paper filing your tax return is pretty much just as easy as e-filing. Instead of submitting your tax return online, youll need to print and sign it. Then, all you have to do it mail it to the IRS. Easy, right? You can file prior-year taxes dating back to 2005 with PriorTax.
How Many Years Can You File Back Taxes For
If the IRS owes you a refund, you have 3 years to file a return and claim your money. Otherwise, the IRS will let you go back as far as 6 years to file missing returns. You can go back further if necessary, but doing so requires approval from an IRS manager.
Note that although the IRS generally doesnt go back further than 3 to 6 years, skipping a tax filing and waiting for it to get old enough to go away isnt a viable solution to tax problems. The IRS doesnt make it a point to go back more than a few years, but they can go back as far as they like if they suspect fraud.
Taking care of old tax problems is a smart move, but it can be a complicated one. Getting all the old forms and instructions right can be tricky, as can determining the best payment plan for your situation, if applicable.
The professionals at Picnic Tax are ready and able to help you navigate the rules for dealing with back taxes and a past due return. Well help you complete your return, file it and devise a way to work out payments with the IRS if necessary.
The task at hand may seem daunting, but with a little patience and help from us, you can get back on track and stop worrying about your overdue taxes or returns. Sign up today and get help from knowledgeable professionals who will help you without judging your past tax mistakes.
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If You Need Help With Your Return
If you are unable to get help filling out your North Carolina return, you can contact a service center for assistance or call toll-free at 1-877-252-3052. Your federal return must be completed before we can assist you in filling out your North Carolina return.
If you are disabled, have a low income, or are a senior citizen, income tax returns can be prepared free of charge through the Volunteer Income Tax Assistance or the Tax Counseling for the Elderly programs. For location and dates of assistance call the Internal Revenue Service toll-free at 1-800-829-1040.
How Far Back Can The Irs Go For Unfiled Taxes
Very few people look forward to filing their income tax returns, but putting off this dreaded chore can lead to severe consequences that range from losing a refund to spending time behind bars. This article will cover what could happen if you dont submit a tax return, explain that ignoring the Internal Revenue Service is not a wise strategy and answer questions you may have about tax audits.
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You May Want To File Even If Youre Not Required To
If youll receive a tax refund, you should file a tax return even if youre not required to.
If youre not required to file taxes but you withheld taxes throughout the year, you can get that money back when you file your tax return.
You may also be eligible for refundable tax credits that will give you a tax refund even if you dont owe taxes. These credits include the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
If you didnt receive your first, second, or third stimulus checks or didnt get the full amount that youre eligible for, you can claim the stimulus checks when you file a tax return.
If youre not sure if you withheld taxes or qualify for tax credits, you may want to file a tax return anyway to avoid missing out. You have up to three years to file previous years taxes and/or claim past tax credits.
