More Tax Prep '08 Tips

When it comes to filing taxes, there are hundreds of potential taxpayer concerns. We will continue our focus on tax preparation from last month (link), and answer a few common questions:

What should I do if I haven’t filed my 2006 tax return?

If you skipped filing last year or any year prior, the best action you can take is to file as soon as possible. Delayed filing may lead to a “failure to pay” or “late filing” penalty along with interest charges that will grow over time. You may not be charged fees and interest if you were owed a refund, but you cannot collect your refund until you file. Furthermore, you have three years to claim a refund or you will lose it. For example, the deadline for claiming a refund for your 2004 tax return is April 15, 2008.

If you earned $40,000 or less and want assistance filing last year’s return, contact your local Taxpayer Assistance Center or call the IRS Tax Help Line for Individuals at 800-829-1040.

I am recently married/divorced. Could this affect my tax filing?

It could if you fail to inform the Social Security Administration about a name change. People who take their spouses’ names or revert to their maiden names after a divorce should make sure the name on their tax return matches the name that is registered with the SSA. A mismatch could result in an unexpected delay.

To inform the SSA of a name change file Form SS-5 at your local SSA office (800-772-1213). Verification takes about two weeks.

Does the IRS know that I moved?

You should notify the IRS to ensure you receive refunds and correspondence. The IRS does update taxpayer addresses through the Postal Service’s change of address files, but contacting the IRS directly is always a good idea.

For more information see Form 8822, Change of Address or call 800-TAX-FORM (800-829-3676).