Remember 2007? A snowstorm dumped eight and half feet of snow on Mexico. That’s Mexico, New York, in case you were wondering. Even then, it was one of the hottest years on record since, well, the beginning of record keeping. A tornado hit Manhattan in August, but that was picayune next to the Yankees losing the division to a tribe of Indians from Ohio. Sales of the iPhone launched that summer took off and haven’t returned to earth since. And, how could we forget, Lindsay checked into rehab, Paris went to jail, and Britney shaved it all off. Bet you couldn’t wait to be reminded of that, along with the fact that 2007 was also the year you didn’t file your taxes.
There are some common causes why people omit to file in any given year. It was a hectic time in their lives, marked by shaky relationships, shifts in residence or job, and they simply forgot. Or perhaps they found themselves with too little income and felt they could ill afford to pay any taxes they feared they might have owed to the government.
In fact, an ironclad case can be made why you should do the right thing and file a late return for 2007. For one, you could be due a tax refund, one you will forfeit if you fail to file by April 18th of this year, the date on which the statute of limitation for a refund for 2007 expires. But even if you owe, it is crucial to get it done. We’ll unpack some of the reasons when we review some of the key facts involved with past year returns.
Just over a million tax payers omitted to file a return in 2007. The IRS figures that it is sitting on above a billion dollars in owed refunds for that year, with more than half estimated to clock in at $640 or more per individual. The state of California alone is looking at a total potential jackpot of $127,000,000. These are impressive numbers, all representing moneys owed to the people, that the IRS stands to pocket if said people don’t come forward to claim what is rightly theirs.
So, it is advantageous to file, if only because you may come into some ready cash. Another excellent reason is that financial institutions, banks and the like look at your past returns when evaluating whether you qualify for a loan. Many discover to their dismay that it is their failure to file in any given year that caused their application for a mortgage, car or business loan to be rejected. Regardless of your particular situation, if you still have neglected to file a 2007 tax return, it is to your benefit to file one now.