Basics of Investing

Archive for December, 2006

Question: Tax time question…Please reply.?

Well…what is new? I too became a victim of this bad economy.
First I lost my home then an investment property I owned then a business. All I had worked for over 30 years was lost in less than 2 years. This contributed to making me very depressed. I did not file for taxes for at least 3 years. I just let it go.
I am still depressed but I like to come back and make it right again.
IS IT AT ALL POSSIBLE?
What is the consequences of this situation. I have not had a letter from IRS just yet to inquire why I have not been filing.
Thanks for your response.

Answer: Get the paperwork together and file. If everything was as bad as you say, you probably will have some long term losses, and not owe taxes. The IRS will eventually file your returns for you and that is the worst case senerio. I love hearing those stupid commercials about those “Tax Experts”, who saved clients 10s or even 100s of thousands from the IRS. The truth is, most of that money was correcting an IRS filed return with more information. By law the IRS can’t give you any advantages when they file a return on your behalf. So, file the returns. The IRS will work with you if you owe, but from what you are describing, I doubt that you will owe unless you were self employed. Even then, losses offset income. Good luck.

Oh and remember, if you are due refunds, there are no interest or penalties.

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