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.
The following time table will help you determine how many years tax records must be kept: Three yearsâ Anyone owing additional taxes must keep their records for three years. If you have filed a claim for a credit or tax refund after you have filed your return you must keep records for three years from the date you filed your return or the date you paid taxes. Four yearsâ Employment tax records must be kept for a minimum of four years from the date the tax was due or paid. Six years-If you have filed a tax return the did not include reportable income (more than 25% of the gross income reported) you must keep your tax records for six years. Seven yearsâ When a claim has been filed for a loss from securities or bad debt, all records must be kept for seven years.