What tax records do I need to keep and for how long?

To be safe, keep your income tax returns indefinitely since they can be your paper trail. Documents regarding investment, real estate and business assets, and other supporting documents (receipts, canceled checks, credit cards, and so forth) should be kept for six years. This is because the IRS can go back three years from the filing date to audit your records and returns, and impose additional tax. In some cases, the IRS can audit up to six years after filing if income is under-reported by 25% or more or if there is suspected fraud. Even if you have always been completely honest about your income and have never been audited, you still need to keep tax records. Sometimes mistakes are made that are not your fault and having the records on hand can help correct the problem with less hassle.

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Can I pay my federal income taxes late?

It’s not always possible to pay your taxes on time. Unfortunately, the IRS does not provide for extensions of time to pay income tax late. Your extension to file your return late will not extend the deadline to pay any balance owed. You will still need to pay at least 90% of your tax bill by April 16th to avoid penalties. The penalty for not paying your income tax bill starts at’% per month, and can increase to 1% per month.

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What documents do I need to file my income tax return?

The types of income tax documents needed to file your income tax return will depend on a number of factors including source of taxable income, medical expenses, interest payments, available deductions, and more. Common income tax documents include personal income records, medical expense records, and records of business expenses or charitable contributions.

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What happens if you forget to mail your W-2 forms to the IRS?

Forgetting to send tax documents with a tax return is a common occurrence. You can rest assured that no adverse action will be taken against you for forgetting to attach a W-2 form or other forms as long as you submit the forgotten tax documents when the IRS requests them. Generally, the Internal Revenue Service (IRS) considers most tax returns filed as valid and may or may not require taxpayers to submit additional tax documents.

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How do I report someone who is not filing tax returns?

If you believe that someone is violating federal tax laws, the best way to report to the IRS is by filling out a 3949-A form. Fill out and print the form and mail it to the Internal Revenue Service Center, Fresno, CA 93888. Another way to report IRS fraud is to call the IRS at 1-800-829-1040 for the Criminal Investigation Hotline in your area. Failure to file tax returns is a form of tax evasion. Tax evasion amounts to using illegal means to avoid paying owed taxes, and is a federal crime.

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Will I be charged a late penalty for not filing income taxes?

For those who fail to file a tax return by April 15 of each year, but are due a tax refund from the Internal Revenue Service (IRS), there is no penalty for failing to file their tax return. The failure to file penalty applies only to those individuals who owe tax and do not file a tax return.

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