Tax Returns

Every year in which you receive income of any kind, you are required to file a tax return. Depending on the type and scope of your income, this return may be straightforward and easily completed or complex to the point of requiring professional assistance. The more you know about tax returns, the more likely it is that yours will be completed in an accurate and timely manner.

Federal Tax Returns

Your federal tax return provides the federal government and the Internal Revenue Service (IRS) with information about your income and taxes for the year. Your federal tax return must comply with all IRS regulations. You are required to complete your federal tax return every year. Failure to do so can result in penalties, fees and even criminal charges of tax evasion and fraud. For many taxpayers, the hassle of preparing and filing your federal taxes is made less unpleasant by the anticipation of a tax refund. This refund occurs when you have paid more taxes during the previous year than you are responsible for.

State Tax Returns

In addition to your federal tax return, you are also required to file a state tax return each year. This return must comply with all state regulations. Your state taxes are administered by your state’s department of taxes or treasury. State taxes must be filed separately from your federal taxes. Like federal taxes, state taxes can be subject to audit. It is in your best interest to make sure your state tax return is error free and filed on time. Most states accept electronically filed returns in addition to those mailed through the United States Post Office.

Delinquent Tax Returns

It is always best to file your taxes on time. Delays in filing can result in costly fees and interest charges. If you find that you will not be able to file your taxes by the official deadline, be sure to file for an extension. This can provide you with additional time to complete your tax return. An extension does not apply towards any dollar amount you may owe. This must be paid immediately or other payment arrangements must be made. If you fail to file your return in any given year, the IRS will give you notice. If you do not respond to the notices, the IRS will elect to file a tax return for you. In most cases, a tax return completed on your behalf by the IRS will reduce the amount of your refund or increase the amount of taxes you owe.