Didn’t make today’s tax deadline? Tomorrow is not too late
The Low Income Taxpayer Clinic shares five reasons why filing a tax return is better late than never
INDIANAPOLIS (April 18, 2016)—Some people simply won’t make today’s tax deadline. The Low Income Taxpayer Clinic run by Indiana Legal Services shares five reasons why Indiana taxpayers should go ahead and file a return even if it’s late.
“There are lots of reasons people miss the tax filing deadline, but penalties and interest add up quickly,” said Jamie Andree, attorney and director of the Low Income Taxpayer Clinic for Indiana Legal Services, Inc. “So we advise people who miss the deadline to get their returns filed as quickly as possible. Payment plans can be set up for those who owe more than they can pay. Filing a return, even late, may help protect you from tax-related identity theft. Not filing may cost you Social Security benefits in the future or may prevent you from getting a student loan.”
5 Reasons to File a Late Tax Return When You’ve Missed the Deadline
1. Avoid greater penalties and interest. Failure-to-file and failure-to-pay penalties add up quickly. File now and save yourself money down the road. Even if you can’t afford to pay your full tax liability right away, you can file now and work out a collection alternative with IRS.
2. Tax-related identity theft is rampant. Filing your own returns, even if they’re late, may help to prevent you from becoming the victim of identity theft.
3. Being tax compliant can protect your financial future. If you are self-employed and do not file your taxes, you will not receive credit towards Social Security retirement or disability benefits. You may also have difficulty obtaining loans, including federal student loans and grants.
4. There is no penalty if you don’t owe any taxes.However, if you had income and didn’t file a return, the IRS may file a return for you and omit certain deductions and exemptions, leaving you on the hook for taxes you wouldn’t have had to pay if you’d filed the return yourself!
5. You may have refunds that can be claimed from past tax years. If you do, there is a limit of three years from the due date of the return to claim these funds.
Tax education and assistance
The Low Income Taxpayer Clinic provides tax education for Hoosiers as well as free legal assistance to clients throughout Indiana whose income does not exceed 250 percent of the Federal Poverty Guidelines. Those needing assistance can call (812) 339-7668, toll free at (800) 822-4774, or email firstname.lastname@example.org.
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Indiana Legal Services, Inc.
An eight-office not-for-profit law firm, Indiana Legal Services provides free legal representation to low-income persons on civil legal matters, focusing on basic needs like protection from domestic abuse, habitable housing, quality health care, and income security.