Back Tax Returns
Many times you don't file your return because you either owe money and can't afford to pay it when the return is due, or you believe you are due a refund, so you don't hurry to file. Even if you owe the IRS the best thing to do is file the return and figure out how you will pay for it later. The Failure to File penalty is a flat 25%. It is greater than the Failure to Pay penalty. Along with this Failure to File penalty comes interest, and interest compounds daily, before you know it the penalties and interest are more than the actual tax.