Organizing documents, keeping them in order, backtracking on your investments and expenses, and all the
paperwork involved might sound overwhelming to some. So, they try to escape the whole process of filing tax
returns by simply ignoring the preparation or submission. It’s been a month since the filing deadline, and most
people have already received their tax refunds, while others on extension have yet to file their returns for last
year.

Believe it or not, there are still some people who have not filed for past years and don’t plan on filing their tax
returns, merely because they are afraid of filing their tax returns. Many taxpayers do not know if they are due
refunds or owe taxes, or they believe they owe taxes and therefore decide not to file or do anything about filing.

There are ways to conquer this fear of filing and reduce or abate penalties that may be charged against you.
You must remember that the statute of limitations (the time the IRS can chase after you) is 3 years, but only IF
you file a return. The statute of limitations does not START until you file your tax returns.

The IRS now also gives you an opportunity to pay your taxes over time or even receive interest if a refund is
due for you. But if you do not file a tax return within 3 years of when it’s due, and you are entitled to a refund,
the IRS will just keep it! This is just another reason to file your returns.

So, let’s look at some points to remember:

• Collect all expense and tax information, schedule an appointment with azmoneyguy or your tax
  professional, and ASK THE PROFESSIONAL to help you sort through your information and
  prepare the returns.
• Filing a tax return that’s due a refund protects the refund for you (you must file within 3 years of
  the due date), even if the IRS takes a long time to refund you. Plus, the IRS pays you interest on
  refunds due.
• Filing sooner reduces penalties (penalties for failure to file on time can be as high as 25% of the
  tax owed). PLUS, INTEREST!
• You can file a tax return even if you don’t have all the facts (you can always go back and amend
  the tax return for up to 3 years after the original filing, once you get all the relevant information).
• You can pay your taxes over time with the IRS if what you owe them is $66,000 or less, using the
  Online Payment Agreement tool at IRS.gov/OPA or by submitting Form 9465, Installment
  Agreement Request. Applying online is faster and typically costs less in setup fees.

Here are the facts you need to know about unclaimed refunds:

• The unclaimed refunds apply to people who did not file a federal income tax return. The IRS estimates
  that half the potential refunds are more than $800 per return.
• Some people, such as students and part-time workers, may not have filed because they had too little
  income to require filing a tax return. They may have a refund waiting if they had taxes withheld from
  their wages or made quarterly estimated payments. A refund could also apply if they qualify for certain
  tax credits, such as the Earned Income Tax Credit.
• If you didn’t file a return, the law generally provides a three-year window from the original due date to
  claim a refund from that year. Once that window closes, the money becomes the property of the U.S.
  Treasury – so it is critical to file on time. There is no penalty for filing a late return if you are due a
  refund.
• The law requires that you properly address, mail, and postmark your tax return by that date to claim
  your refund. We always suggest that when mailing returns, do so, certified mail, return receipt
  requested. Also, remember you can e-file your returns for the current and two prior tax years using tax
  software. For older years, you must paper-file. AND be sure to use the correct address to send returns
  in, which is different from the address you send payments to. Your tax professional can help with the
  correct address, or you can go to www.irs.gov and find the correct address to mail in returns or
  payments, based on where you live.
• The IRS may delay your refund if you have not filed returns for other recent years. The U.S. Treasury
  will apply the refund to any federal or state tax owed. It may also use your refund to offset unpaid child
  support or past due federal debts, such as delinquent student loans.
• If you’re missing Forms W-2, 1098, 1095, 1099, or 5498 for prior years, you should ask for copies from
  your employer, bank, or other payer. If you can’t get copies, get a free transcript showing that
  information by going to IRS.gov. You can also file Form 4506-T to get a transcript.
• The three-year window also usually applies to a refund from an amended return. In general, you must
  file Form 1040-X, Amended U.S. Individual Income Tax Return, within three years from the date you
  filed your original tax return. You can also file it within two years from the date you paid the tax, if that
  date is later than the three-year rule.

Call today, don’t delay! See how this affects you. We can be reached at 602-264-9331 and on all social media under azmoneyguy.

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