Do You Have Delinquent Taxes?

Delinquent taxes occur when you are late in filing your tax return. While you may have been late or delinquent in filing a tax return, an extension can save you from having delinquent taxes.

While delinquent taxes can be a major burden you are not required to file a tax return if you are owed a refund; however, you lose the right to your refund if you do not file your return within three years of the date the tax return was due.

You also do not need to file a tax return if you did not meet the tax return filing requirements.

Filing requirements depends upon your age, income, and filing status. For example, for 2006, if your filing status is single and you make under $8450, you did not have to file a return and you are not delinquent taxpayer. Check to see if you met the filing requirements before making the determination that you have delinquent taxes.

The due date for filing your tax return is usually April 15. If you are submitting a return by mail, the return must be postmarked by or on April 15. If you are submitting a return electronically, you must have had your return submitted on April 15 before the clock reaches midnight; otherwise you will have delinquent taxes.

If you have filed an extension* of time request before April 15, the deadline for the two-month extension is June 15; for the six-month it is October 15. December 15 is the latest possible discretionary extension deadline for out-of-the-country taxpayers.

Due dates that fall on a weekend or federal holiday are delayed until the next business day.

If you met the year’s filing requirements and failed to submit a tax return by the due date, then you have delinquent taxes

When you have delinquent taxes, you owe the IRS penalties and interest on top of the original amount owed. A portion of your wages could be garnished and your assets could be taken away to satisfy your debt.

* It should be noted that extensions grant you extra time to file and will save you from late filing penalties. Extensions however do not save you from owing interest: interest will start accruing as of April 15.