Every country provides its citizen all of the basic necessities like food, water, residency and many more such thing. Government of any country needs money to keep the country going. This money is provided by the citizens of a country who avail all of the benefits from the country. This form of money is known as tax which is levied by the government on many objects, on people’s income, on business organizations, etc.Tax is the contribution that must be given to the state by people which is levied on their income, profit and assets. In this article, we will be discussing about prior year tax return and the need of prior year tax return.
Prior year tax return:
As we know that tax return is the form or document of the income, profits, assets or possessions of a person. It is a kind of a record of a person’s yearly accumulation which must be submitted to government who then levies a tax on the person according to his possessions. Similar is the case with prior year tax return but there is a slight difference between the two. As the name “prior year tax return” signifies that it’s the documentation of a previous year. So, it will not be incorrect to say that prior year tax return is the document or form of previous year on which person’s income, profit and assets of last year has been written.
According to IRS (International Revenue Service), a person should at least keep the record of income tax of last three years so that there will not be any difficulties for later on.
The need of prior year tax return:
Sometimes, there might arise any problem in the government tax systems where there records get disturbed so people should keep their last year documents of tax return which includes their profits, income and every asset so their will not ben any problem for later on. If a person does not have a record of his prior year tax return then he would have to go through the whole procedure again. This is why IRS (International Revenue Service) instructs to save at least three year of tax return. So if any emergency arises, a person can show his prior year tax return.
It is compulsory for every citizen of a country to contribute in the making or progress of a country. This contribution can be done by paying the tax. Tax is the specific amount levied on the citizens of a country according to their income, profit or possessions. Prior year tax return is the document or form, on which the record of last year is recorded, in this record person’s yearly income, profit, possession and assets are written. Prior year tax return is extremely important as without it latest tax return would not be accepted by the government. “Ezy tax online” guides and helps people in making prior year tax return.