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What to Do When You Owe IRS Back Taxes

by Jason on April 21, 2010

If you missed the tax deadline and have tax returns that have not been filed, it is imperative you address the situation immediately to avoid continued problems with the Internal Revenue Service.

While the reasons for not filing taxes are certainly important, at this stage of the game your focus should be on how you can resolve this situation, not make key tax mistakes, move forward and get back tax help.

In many cases people convince themselves that if they have not yet heard anything regarding IRS back taxes, they have somehow caught a free pass.

It is dangerous to convince yourself of this as one day they will surely contact you regarding what you owe the IRS and tax returns that have not been filed.

To avoid the additional stress and worry of when that day will occur, take the necessary steps now to get back taxes help and get your IRS back taxes in order.

Here we look at how you can get the process started and why it is important to get back taxes help and file IRS back taxes.

The Process of Filing IRS Back Taxes

Gather Documentation

If organization is not one of your key strengths, you may encounter difficulty when gathering the necessary documents to file back taxes.

Depending on how much time has passed since you last filed your tax return, the information may be have been misplaced or absent all together.

If this is the case, you can request the necessary documents from your employer or from the IRS directly.

Specifically you will be looking for your last filed tax return as well as W-2’s or 1099s from the year(s) in question.

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Preparing the Return

Once you have all the documentation needed to file the return, you must decide whether you want to hire a tax professional or attempt to prepare the return on your own.

While there are many software products available to assist in do-it-yourself tax preparation, this might be one case where you are better served by enlisting the help of a professional trained in tax preparation and IRS back taxes.

Tax laws are continually changing and it is important to be up-to-date on these laws to ensure your taxes are filed correctly and with the most eligible deductions and credits applied.

This will have a significant impact on whether or not you receive a refund or owe IRS back taxes.

File the Return

Whether you end up owing IRS back taxes or anticipating a refund, the next step is filing the tax return.

You can submit your tax return to the normal address provided by the IRS for filing tax returns.

If you have been contacted by the IRS regarding back taxes, they may have provided an alternative address to submit back tax returns.

As always, make sure you have a copy of the full return as well as any supporting documentation to keep for your records.

Why it is Important to File IRS Back Taxes

By taking the steps necessary to file IRS back taxes you can eliminate the stress and worry of waiting for the IRS to contact you regarding back taxes.

If you think that won’t happen, think again because despite the slow moving IRS system, they will in fact catch up with you at some point in time.

During that time, penalties and interest on any taxes owed will continue to accrue, resulting in an even larger tax liability for which you will be responsible.

Unpaid tax bills can result in a tax lien or levy on wages and other assets, therefore it is imperative you cut this problem off at the pass to protect your home and property in the future.

This has been a guest post by  Backtaxeshelp.com, a site designed to help you pay back taxes. Owing back taxes to the IRS is stressful, and negligence will only worsen the situation. Learn how to get back tax relief.

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