What Should I Know About Filing Back Taxes?
- September 1, 2019
- Posted by: asal
- Category: Tax Resolution
If you want to avoid hearing directly from the IRS, you want to make sure always to file back taxes. There are several situations wherein the IRS will start to contact you, even making a mistake on your tax returns. The best way to settle back taxes is to file back tax returns. However, filing back taxes isn’t always as easy as it sounds. You must protect yourself even when you think you’re taking the right steps by filing back taxes. Read on for some steps to follow to take control and settle back taxes.
Make Sure You Have All Tax Documents
Do you remember the last time you filed your taxes? Here are the documents you’ll need to gather before you file back taxes.
– A copy of the previous tax return you filed
– W-2s and other tax documents for the years you didn’t file
If you’re missing any tax documents, you can request copies of tax documents from the IRS for free. Additionally, you can request tax documents from your employer or the organization that sent them to you. It’s essential to keep in mind that these tax documents may not be easily accessible. Also, there might be a fee to collect these documents.
File Back Taxes With A Tax Professional
If you file back taxes on your own, keep in mind, it could take up to three hours per tax return. Some services exist to file back taxes for free. However, tax code and regulations change every year, making it complicated to file back taxes. Understanding the rules for each year in which you file back taxes is critical. For that reason, it’s better to work with an experienced tax professional who knows how to settle back taxes. A tax professional can help you with compliance and also help you deal with the IRS down the road. When looking for a tax expert, find one with significant experience in settling back taxes. A tax professional can give you advice on how to handle incomplete tax documentation. Tax professionals can also act as an advocate who will negotiate with the IRS on your behalf.
Ensure You Protect Your Tax Refunds When You File Back Taxes
Even if you file back taxes late, you may still be entitled to receive a tax refund. In most cases, taxpayers have three years to file back taxes and still receive a refund. However, if you owe back taxes, the IRS will often apply your refund to your tax debt.
File Back Taxes and then Settle Back Taxes
If you file back taxes and learn you owe money, it’s essential to settle back taxes. You may not be able to pay the IRS what you owe to settle back taxes. In that case, working with a tax relief professional can be beneficial. Tax professionals can help you navigate an:
– IRS investigation
– Tax lien
– Bank levies
If you can’t settle back taxes, a tax resolution expert can help you negotiate a deal with the IRS. You may qualify for an Installment Agreement, or you can ask for an Offer in Compromise. Depending on your situation, an Installment Agreement can provide you with up to 72 months to settle back taxes. However, to qualify for an Installment Agreement, you most owe the IRS $50,000 or less. For taxpayers who owe less than $10,000, the IRS will automatically approve your request to settle back taxes.
File Back Taxes And Then Plan Ahead For The Future
Once you file back taxes, you should then focus on future tax seasons. You can review your overall tax situation and come up with strategies to reduce your taxes and achieve your goals. If you want help preparing for the future, a tax professional can be beneficial. If you believe you may owe taxes next year, you can make estimated tax payments in advance. Independent taxpayers not taking withdrawals from a payroll must make estimated tax payments. If you make quarterly estimated tax payments, it can help you avoid penalties on your annual tax return.
Tax Laws To Know About Filing Back Taxes
The IRS will often make an educated guess about a taxpayer’s tax liability. You will receive a notice of proposed assessment from the IRS. The IRS may even file a tax return on your behalf. You can reduce or eliminate the IRS’ assessments if you file back taxes. The IRS can charge penalties and interest on unpaid tax liabilities. Additionally, the IRS can also place a tax lien or bank levy on your assets for payable taxes. Because your tax information is confidential, a tax professional does not have to share your information with anyone.
Tips For Filing Back Taxes
You must file late returns on paper and mail them to your local IRS service center. It’s possible to use tax software to prepare late tax returns, but you must print them out and mail them. The IRS does not allow taxpayers to file late returns electronically. You should send your late tax returns by certified mail. It’s also possible to hand-deliver your tax returns to your local IRS office if you are under a time crunch. When you submit your tax returns, make sure the IRS representative stamps the copies.
Call Platinum Tax Defenders For Help Filing Back Taxes
If you need help filing late tax returns, call the experts at Platinum Tax Defenders. A tax relief services company can be helpful if you need to settle back taxes. Additionally, tax relief professionals can help you prepare for future tax seasons and avoid late filing penalties. Filing back taxes and settling back taxes can help set you up for a successful financial future. The longer you go without paying what you owe the IRS, the worse your situation will be. Get ahead of your back taxes and call Platinum Tax Defenders today. The tax relief experts offer free consultations for new clients.