Moderator briefly explains that you file late taxes by using the same forms that are used for regular tax filing.  More importantly, you shouldn’t delay filing your tax returns just because you can’t pay taxes that you may owe.

If you file late you may be subject to tax penalties.

If you pay late you may be liable for late payment penalties. But if you want to reduce these additional amounts owed, its always better to file now, even if you can’t pay, to stop the late filing penalties.

The late filing penalties are roughly 5% a month whereas the late payment penalties are only a half a percent per month.  That could be a big difference. Your almost always better off to file even if you can’t pay.

There’s another reason to file. Did you know the time the IRS has to change or collect your taxes is limited by law. If you haven’t filed taxes in years and you owe taxes and you file now the IRS has 10 years to collect its money.  If the tax returns you didn’t file are from several years back you could have possible never had to pay the taxes … if you had only filed. Even worse, don’t file now and the period of time in which the IRS can claim taxes never ends!