Income tax past due

Posted: 01:59 PM ET

HELP ME CLARK!

TERRI:

I recently discovered my stepson has never filed income taxes. He just turned 22 and worked when he was in high school. I'm trying to help him straighten this out, but I don't know where to start. He made approximately $45,000 in 2008 and I don't have all the W2s for the previous years. Any advice?

CLARK:

HLN's Money Expert Clark Howard

In recent years where he's been making a substantial amount of money, he needs to file a return and the IRS will actually help you with that.

I know that sounds crazy, but if you contact the IRS at the taxpayer advocate office and you tell them, "Hey, I didn't file I know I should have, I need your help in filing returns for the last three years,” you file returns, and if you don't owe money because of the amount that was already withheld then there's no harm, no foul.

If you owe money, you will pay the taxes you owe plus interest and penalties. But the amount you'll be charged if you come forward is more favorable than if they find you later.

For earlier years while he was a teenager, odds are that he didn't owe any money so there's no real problem not having filed, if there were years that there was no tax liability.

Filed under: Clark Howard • Living • Taxes

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Debra D Corcoran

November 6th, 2009 6:55 pm ET

Howard: Can you please investigate Capital One Card's "new poliicy." If an individual pays off their card in full or if they make a large payment towards their bill, Capital One "freezes" the person's card for seven days (even after the money was electronically paid and cleared the bank in excess of a week). This has happened to me twice in the last two months (I am never late with them and usually try to pay off my bill in full). The said they want to make sure "the check clears!" I am so angry about this new policy. It punishes good consumers who are responsible with their cards. I also think it is very unethical and a huge money making opportunity for Capital One for the interest they earn in holding onto someone's money. I use my Capital One card for my law practice, and when I spoke with them about this today, I told them that I was going to contact you and your show about this issue. Thank you, Debra D Corcoran, Esq.

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