From: Dallas, GA

Dear TaxMama,

Okay, Okay. I'm ready for the lecture to begin. I just recently found out that my husband never filed the last three years worth of taxes.

Can you give me any pointers on how I possible lower any penalty costs that we will most likely need to pay?

Mad in GA

 

 

TaxMama Replies

Aw Sheesh, Madeline,

You deflect the whole lecture thing. It's no fun when you're expecting it.

Seriously, it's not the end of the world.

Especially if had a job, and withholding all that time. It's even pos

sible that he'll have refunds. You have three choices:

1) take everything to a tax professional so they can do the tax returns.

2) Go to IRS's forms pages and get the forms for those years and prepare the returns manually.

Remember to get forms from your state, too. Scroll down Georgia's Individual Forms page. You'll find forms for several years.

3) Or use TaxCut software for the prior years - scroll down on this page to "Need to File Prior Years?"

If you do end up owing taxes, at least these few years had the lowest interest rates ever! Around 4% - 7%. You can just let the tax agencies compute the interest and penalties.

Remember, the lower the taxes, the lower the penalties and interest, since they are computed on the tax balance.

But penalties may be as high as 25% of the taxes due. So do your best to keep the tax balance as low as legally possible.

If you need a good tax professional, visit NATP's tax pro site http://www.taxprofessionals.com/

You'll find a good cross-section - or ask me. I know some wonderful tax pros in Georgia!

Best wishes,
Eva Rosenberg, MBA, EA