Penalties and interest are part of your âback taxes.â However, if you filed on time but did not pay in full, you will be subject only to the failure to pay penalty. Interest is charged on taxes not paid by the due date, even if you have an extension of time to file.Interest is also charged on penalties.he transcript will also identify years for which the IRS did not receive a filed tax return. Get information from IRS Publications and Forms. The IRS Publications have a great deal of information that you can use to resolve your âback taxâ issues.
Seven Years. Keep any tax return and documentation that includes a claim for deducting worthless securities for seven years. There you have it. Check back in a few days and I'll share a few more tips on what to keep indefinitely and how to keep your records organized and safe.
Keep for Longer Than Three Years. There are specific circumstances in which the three year rule does not apply. You should keep tax returns for more than three years in the following situations: If you omit more than 25% of your gross income on your tax returns, you should keep the return for six years. In that case, the IRS has six years to assess additional tax. If you claimed loss for worthless securities or bad debt deductions, you should be save the tax return for seven years.