Filing Your 2008 Taxes Late

It’s important to keep in mind that even if you have put in an extension for your 2008 tax return you still may be required to pay the penalties. Depending on how much you owed these can mount up to large sums of money. Each year taxes must be filed on the same date, April 15th, or, in the case that it falls on a weekend, it will be the following business day. Plan ahead and make sure that you are prepared for next year’s taxes. Also, keep in mind that in the case that the IRS owes you a return for 2008 you can get it up to 3 years after the taxes due date.

In the case that you don’t owe the IRS any money on your 2008 taxes, you will not be charged any penalties. You must, however, still file your 2008 taxes anyway to make sure that all of your paperwork is in order. Also, it’s important that if you want to receive your 2008 tax return you must file before the 3 years are up or else you forfeit the entire amount.

If you owe money to the IRS however, things change quite a bit. You must file your tax return and be ready to face the penalties which apply. There are three penalties that apply to your taxes so put them into consideration when filing your late 2008 taxes. These penalties are as follows: failure to file penalty, failure to pay penalty, and the interest. Be ready for percentages to pile up and lots of calculation if you have decided to file on your own.

The first penalty is the failure to file penalty. This penalty is calculated based on the tax return deadline, April 15th, including the extensions given and applies up to the date you actually file. You will be charged 5% monthly each month that the penalty is late. However, should it be more than 5 months late, in which case if you are filing your 2008 taxes it is, the maximum is 25%. So automatically add 25% to your 2008 tax due to the IRS. Keep in mind, this is just the beginning, so take a big breath and continue reading.

The next penalty is the failure to pay your 2008 taxes penalty. This penalty is calculated based on the total amount of taxes you owe. Keep in mind, unlike the failure to file penalty, it doesn’t have a maximum percent. The penalty is 0.5% each month the tax is not paid in full from the deadline, April 15th, which you were supposed to pay it. So, if you can, pay off your taxes in one bulk payment if possible, because this 0.5% will continue to grow with each month until you have paid each and every penny due to the IRS.

The last of the penalties you have to worry about is the interest penalty. This penalty is also calculated on how much you owe one your 2008 taxes. This penalty is somewhat difficult to calculate as it changes every three months, so you will have to check to see exactly what the changes were in the timeframe that you owed taxes. Currently the penalty is 4% per year, though that will change soon. This penalty is calculated for each day until the tax is paid in full. Do a quick research as to what the changes are and use a program if possible to help you calculate what you owe.

The payment of your 2008 taxes is very important. There are a couple of ways to go about it. Most importantly, use your good communicating skills and speak to a representative at the IRS to help you set up a payment plan as well as to help you figure out what payment method is best for you. Being courteous with them and understanding that the money you are paying isn’t their fault will get you far and you will be able to get more help than you expected. Make sure that you set up your payment plan and pay as quickly as possible to avoid an IRS investigation, lean, assessment, or levy, as those are difficult to get out of and are very stressful to deal with. Sometimes, if you owed a small amount of taxes you can get the entire thing cleared in one quick payment, if this is the case, do it as quickly as possible.

The IRS is based on something called the Statute of Limitations. They basically state the following, 3 years to get a refund, 3 years to audit taxes, and 10 years to collect taxes due. So far, at this point if you are filing your 2008 taxes and have a return due, you can still get it as the three years are calculated from the date you have to file your taxes, April 15th 2009. So you have until April 15th 2012 to file your 2008 taxes and still get your return should one be owed to you.

Keep in mind that all late taxes must be filed on paper. So, no matter how you decide to file your taxes, by using a program, professional, or on your own, make sure that the final product is on paper and not filed electronically. Also, if you are filing for taxes aside from the 2008 taxes you will need to have each in a separate envelope, this is to avoid any clerical errors once the IRS receives the envelope. And lastly, if at all possible, hand deliver the taxes. This will not only assure you that they have reached their destination safely, but you can also get proof that they were filed by making copies of the first page of the tax return and having them stamp it when you drop off the packet.

So, if you are filing your 2008 taxes be prepared for the paperwork, calculation, and possible penalties. In the case that you don’t owe any money and just want your 2008 tax return you have until April 15th 2012 to do your tax return, and will have no penalties. It’s important to keep in mind that your taxes are important and plan ahead for the next April 15th so you do not have to file taxes late again, especially if you owe money.