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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{ 13 comments… read them below or add one }
In my experience with tax preparation work, the IRS is generally fair in the normal course of business. Where they get ugly is when they have to come after you. If you haven’t filed in a few years, but come clean and want to file, they’ll generally work with you. The important thing is to show good faith.
Like you said, it’s best not to wait for them to contact you. By then the situation will have shifted and not in your favor either. With computer matching, it’s just a question of time before they’ll come knocking.
Thank YOU for this article, your timing is perfect, as we are seeing an increase in non-filing, tax debt, wage levy, etc. questions. At http://www.easyIRS.com we have found what Kevin@outofyourrut posted to be true as well. Take initiative and the first step toward the IRS, don’t wait for them to ask/demand you to step forward.
Kevin is exactly right! I was president of a local Little League for a couple years and I discovered that we had not filed our income taxes in almost ten years. Even though we didn’t owe money we still had to file to maintain our non-profit status.
The IRS was extremely understanding and helped us out. However, at one point we started to (unintentionally) drag our feet in the process and then they got nasty – threatening us with thousands of dollars in penalties.
By the way, regarding being organized – I don’t mean to sound like a jerk, but it doesn’t take a lot of effort to get a two-drawer file cabinet, some manila folders and file holders! The effort is well worth it!
All the best,
Len
Len Penzo dot Com
I think it holds true with any creditors – approaching them and being honest is a much better way to handle it than running away and pretending it doesn’t exist!
Jason, why do people miss tax deadlines and fail to file an extension you think? Why bother going through the stress and paying the penalties?
Is it the same thing when people “forget” to miss their CC bill
Rgds, Sam
Sam – no doubt it doesn’t make sense! My guess is that many people who miss the tax deadline also have a history of missing CC payments too!
“Why do you think people miss tax deadlines…??” Really? Are you joking? So, in YOUR world, everyone should be in good standing with the IRS and credit agencies? The reality is, folks make mistakes for many various reasons. I hate to burst your bubble and expose you to…reality.
Brent, thanks for stopping by.
Yes – everyone should be in good standing with the IRS, it’s something we owe therefore we should do everything in our power to pay them. Of course, this is not reality and people do make mistakes. I completely understand that, but once the mistakes are made there should be steps taken to repair the mistakes, pay what you owe and get into a good credit standing.
This can be a great blog. I will certainly be reading this weblog much more.
The IRS now has a “What If” program on the irs.gov web site. (just put in the keyword: what if) I found this information for clients who were asking questions about unemployment and what if, they didn’t have the money to pay the taxes? However, like the article says, you must file your past due tax returns first.
Always make sure you file taxes, even if they are late. The penalties for non-filing are 5% a month.
Ouch!
Late filing won’t get you anywhere. Just get them done.
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