Tag: IRS penalties

Posts Tagged ‘IRS penalties’

What do I do if someone else claimed my dependent?

Posted by Manisha Hansraj on October 16, 2018
Last modified: October 19, 2018

someone else claimed my dependent

In the worst case scenario, the IRS rejects your tax return.

Someone else claimed my dependent. What should I do? Luckily, the IRS gives you options in case you’re stuck in this situation.

Unfortunately, the IRS cannot disclose who claimed your dependent. Typically it’s either the other parent, their child claimed themselves as an exemption on their individual tax return, another member of the household such as the grandparent, or any other person that lived with the child for a portion of the year.

What you need to do.

If you’re filing a current year return, you may receive a rejection due to your dependent’s social security number. In this case, you should double-check that you reported their SSN correctly. If it is reported correctly, you will need to paper file your return; meaning you must print, sign and mail your return to the IRS. You cannot e-file it since the IRS will reject it again. (For tax season 2018, the e-file and extension deadline has passed on October 15, 2018. Therefore, you must paper-file your return.)

You may receive a CP87A Notice which notifies each party that if they incorrectly claimed the dependent, they need to file an amended tax form. If you can rightfully claim the dependent, you do not need to respond to this notice. In order to dispute the claim of your dependent, you will need to attach a cover letter (more…)

When is the Deadline to File Taxes for 2018?

Posted by Manisha Hansraj on September 19, 2018
Last modified: October 16, 2018

deadline to file taxes 2018

Am I too late to file my 2017 taxes?

For taxpayers who are receiving a refund, there’s absolutely nothing to worry about! The IRS does not attach penalties to late returns that have refunds. On the other hand, if you had a tax due to the IRS, you must have paid your taxes to the IRS by the tax deadline which was April 17, 2018 or you will be subject to penalties.

Read on to find out the steps you need to take in order to file your return.

Can I still E-file?

You can no longer e-file your 2017 return since October 15, 2018; the e-file and extension deadline has passed. The 2017 tax year now becomes a prior year return. All prior year returns have to be paper-filed. In order to paper file a tax return, you are required to print, sign and mail your tax return to the IRS.

With Prior Tax, you can easily create an account for your tax year, enter your tax information and submit it to us in order to download, print, sign and mail your tax return.

File 2017 Taxes now

What if I didn’t pay taxes to the IRS?

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Can I pay my federal taxes with a credit card?

Posted by Manisha Hansraj on September 10, 2018
Last modified: September 18, 2018

Can you pay federal taxes with credit card

The IRS can’t directly accept credit card payments due to tax laws.

However, they can accept payments through a third-party processor. For example, online tax preparation companies are third-party processors since they are designated by a merchant to handle transactions for merchant acquiring banks. They can then assist you in making your credit card payment towards your tax bill to the IRS.

Here’s what you need to be prepared for when you plan on using the credit route.

There are no flat fees when using your credit card.

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Did You Miss The 2016 Tax Deadline?

Posted by admin on December 26, 2017
Last modified: September 14, 2018

Did you miss the 2016 tax deadline?

With the 2018 Tax Season less than a month away, you probably have some catching up to do. Luckily, you can still file your 2016 tax return if you’re one of many taxpayers that are rushing to stay on top of a missed 2016 tax deadline. That being said, start raiding your rooms for all the receipts you need to finish your taxes. If you want to find out if you have a refund coming your way, utilize our 2016 tax calculator.

Read on to find out how to file your 2016 prior year return.

Can I E-file my 2016 Tax Return?

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Unfiled tax returns have you drowning?

Posted by admin on June 6, 2017
Last modified: June 16, 2017

Overwhelmed With Prior Year Unfiled Tax Returns?

While most Americans finish or have finished their current year taxes, others have stacks of unfiled tax returns from previous years. You may feel swamped with the pressures of work and within a blink of an eye, you wake up to find an IRS notice in the mailbox. Let’s face it, life gets busy. Nevertheless, you have forgotten about those prior year tax returns, but the IRS hasn’t. Here are some common questions for those taxpayers who are stuck in the mud with unfiled tax returns:

Should I file my Unfiled tax returns?

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How Far Back Can I File Prior Year Taxes?

Posted by admin on October 26, 2016
Last modified: February 2, 2018

So, you ran a little late and forgot to file a prior year tax return?

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, you’ll 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.

File prior year taxes for 2005-2016 on PriorTax

By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline. Therefore, if you have not filed taxes from 2005, 2006, etc. it’s best do so now (or as soon as possible) on PriorTax.

How many years back can you get a tax refund?

The IRS Statute of Limitations allows you three years from the filing deadline to file your prior year return and claim your refund. For example, the last day to claim your tax refund for the 2013 tax year is April 15, 2017. This is because the deadline date was April 15, 2014.

Keep in mind that they also have the same amount of time to audit you and up to ten years to collect any unpaid tax.

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Can I File My 2009 Taxes Online?

Posted by admin on October 20, 2016
Last modified: November 2, 2016

You can prepare your 2009 tax return online with PriorTax. 

Once, a long time ago, 2009 tax returns were due on April 15, 2010.

If you’ve been putting off filing your 2009 taxes since that initial deadline, you may wonder why you should bother filing at all?

There are a couple of good reasons you should do it.

For one, the IRS has 10 years to collect on any tax you owe. For two, tax penalties for filing late increase by the day and, by now, they have really built up. The longer you wait, the worse the situation.

The good news is that you can still prepare your 2009 taxes online with PriorTax.

Will I Owe the IRS Late Penalties?

If you owe the IRS from the 2009 tax year, plan on paying late penalties. These late fees include:

  • Failure-to-file: 5% of your tax due total for each month your return is filed late, up to 25%
  • Failure-to-pay: ½ of 1% of your unpaid taxes for each month or part of a month left unpaid (this amount is waived if you’re already facing the failure-to-file penalty)

The penalty for filing late can be ten times worse than the penalty for paying late. At the very least, file your 2009 return as soon as possible.

Then, contact the IRS to arrange to pay your tax bill. They can set up an installment plan that will work for you. (more…)

Can You E-File A Tax Return After the October Deadline?

Posted by Michelle O'Brien on October 20, 2016
Last modified: December 16, 2016

Sorry if you missed that train. But you can still prepare your late return online.

You cannot e-file a prior year tax return. However, you can prepare prior year returns on PriorTax and send your printed return copy in the mail, to the IRS.

You can only e-file a “current year” tax return between mid-January when e-file opens and mid-October when it closes, the year after the tax year in question.

Each year the IRS shuts down their e-file system come mid-October. This is why you will need to send in a physical copy of your return to the IRS.

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How to File Taxes without a W-2

Posted by admin on October 18, 2016
Last modified: November 2, 2016

It’s easy to lose your W-2 and just as simple to file without it.

E-filing your tax return these days is pretty straightforward. You just plug in the numbers on your W-2 to the online  tax application, take the credits and deductions you’re entitled to, and VOILA! Couldn’t be simpler.

But what happens if you don’t have a W-2? Suddenly things get a lot more complicated. Don’t worry. There are steps to take to make sure you get your tax return to the IRS.

Contact your employer

First thing’s first. Make every attempt to get the actual document itself. If your employer didn’t send you one, or sent you one that was incorrect, contact them and request that they send you the right one.

Employers are required to have W-2 forms issued to their employees by January 31. If you still don’t have it by then, it’s time to take additional action. At this point you should call the IRS at 1-800-829-1040 and tell them about your missing W-2. They will call your employer and tell them to send you the W-2.

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7 Tax Updates for 2016

Posted by Michelle O'Brien on December 11, 2015
Last modified: December 21, 2016

5…4…3…2…1….. Happy Tax Season 2016!

With the new year comes promises to lose weight, shiny new engagement rings, and of course…annual tax updates. While most tax laws remain consistent from one year to the next, there are some that change.

We are here to share a sneak peek of 7 tax updates coming your way for 2016. Let’s get started.

 

1. Tax Day is April 18th this year.

Since April 15th falls on Washington D.C. Emancipation Day, the tax deadline date will extend to the following Monday, April 18th. Are you among the lucky ones living in a New England state? Extend that deadline one more day to April 19th.

 

2. Tax penalties related to Obamacare are increasing yet AGAIN.

If you’ve reached the ripe ol’ age of 26, then you’re familiar with health insurance and the recent changes to it via Obama. For those without coverage last year, a penalty of $285 (or 2% of income above the filing limit) was billed to them. Still don’t have coverage for 2016? If you don’t apply for an eligible health care plan, then the tax penalty could hit an all-time high of $695 per adult (or 2.5% of income).

 

3. The Earned Income Credit is increasing.

2016 brings a small but modest increase to the EIC. If you are a taxpayer with three or more qualifying dependent children, then the maximum credit will be increasing by $27 to $6,269. For those with two dependent children, your maximum will be increasing by $24 to $5,572. For those taxpayers with an only child, you can receive a maximum of $3,373 which is up $14 from 2015. No kids to worry about? You’ll still get an increase of $3 from last year which will leave you with $506 for 2016. (more…)