A tax return is an official FORM which you have to fill and submit, containing information about your income and property you own, so that the tax you have to pay can be calculated. Not everyone is eligible for tax return. If a person is earning more than standard deduction then he will be eligible for tax return. Now you can file for tax returns of previous three years.
Prior year Tax return:
Now you can also file prior year tax return due to different causes and purposes.
- If you want to register yourself as a regular tax payer.
- If you want to be in ATL (Active Taxpayer List)
- If you receive any notice from FBR to file for prior year tax return.
What is ATL?
ATL is basically a list or record of persons in a country who have paid previous year tax. If you want to be in that list you must have to file for prior year tax return (e.g. if you want to be in ATL for year 2020 if you want to buy some property) then you must have to file for 2019 tax return).
You must have to file for your taxes returns like business tax returns, personal lodge tax return, and overdue tax return as this will be reported to SSA (Social Security Administration) in order to get disability or retirement benefits. But if you failed to file for these taxes then you may have nothing to report. That is why it is necessary to keep records of all your tax returns. Generally, it is not essential but it would be very beneficial for you in your future. Also need prior year tax return when you are filing for this year tax return. A tax payer should file for tax returns even if he has not pay complete amount due. After getting tax return he can pay the remaining amount as soon as possible.
- You also need to lodge a tax return online or by mail or post. This is necessary for your and your property’s security as well. If your past year’s taxable income is more than a certain amount then this is mandatory to file for lodge tax return.
- If you have missed to file for your tax return then there is another way to resolve this issue. Now you can also file for overdue tax return as soon as possible.
- If you are owning a business either large or small, you have to pay your taxes and then file for business tax return in order to keep a record for future.
- You can also file for personal lodge tax return online
All these above mentioned taxes are necessary to pay and for its record file fir tax returns.