How to take care of your late state tax returns
If you get behind on federal income taxes, the IRS lets you know. When you have past state tax returns to file? Not so much. States have a way of getting behind on taxes, which creates massive deficits, which makes it harder for them to do stuff like repair your highways. It can also mean that they have a bunch of refunds to hand out, but not the know-how or manpower to contact the people owed.
That’s right: if you have past state tax returns to do, you might be missing out on getting your own money back.
And if you owe money, you may not have any idea until they start repossessing your house. What’s a taxpayer to do? Here are some steps to take:
- Make sure you have past state tax returns to file. Even if your state sent you a letter, they could still have it very wrong. It’s always a good idea to verify when someone sends you a letter demanding money. Make sure it’s actually you who owes the money and make sure the letter actually came from your state IRS first.
- Find out what your state laws are. The rules for filing past state tax returns vary from state to state, so make sure you know yours! It could be that there is a statute of limitations past five years. It could be that you aren’t eligible for a refund after a year. The fines and interest involved also. (more…)
