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Federal
law requires individuals to file a tax return every year they earn
taxable or reportable income. When taxes are not paid in full the
IRS applies penalties and interest. Penalties and interest are
compounded daily, so the amount owed continually increases.
If you want to bring your tax record current, consider the
following:
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Filing Requirement |
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If
you had income below the filing requirement or no taxable
income, you might not be required to file a tax return.
IRS Publication 17, Individual Income Tax Guide, contains
information on filing requirements.
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Reportable Income |
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Not
all income is taxable. Wages, tips, Social Security, and
self-employment income are taxable.
SSI benefits, state aid, Medicare, Medicaid,
veterans’ benefits, and food stamps are nontaxable
income.
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Get Help From an Accountant |
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Tax
laws are complicated. To get the best possible outcome
with a minimum amount of frustration, work with an
accountant who knows the laws and language of the IRS
system.
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Explore
Options |
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If
you file a late return or owe taxes due to an extreme
health condition, you can ask for an extension or a tax
break. On the front of each tax return, attach a letter
explaining when you were diagnosed HIV+ and that symptoms
prevented you from filing on time. If your doctor issued
you a letter declaring you terminally ill, include it with
your own letter. |
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