Why should you avoid back taxes?
Taxpayers who don’t file returns have a difficult time catching up. However, with professional back taxes help it is possible to get back on track. You should be current on your tax matters for many reasons. For instance, you risk having a hard time getting financing if you are behind on your tax matters.
Banks and mortgage companies ask for current copies of a person’s current tax return before issuing loans. Other problems associated with being back on taxes include missing tax refunds. You can’t claim your refund if you don’t file returns.
The IRS can also file a substitute return on your behalf, which may not be accurate given the taxman doesn’t know the tax credits or deductions all taxpayers qualify for. In fact, substitute returns usually result in higher taxes than if a taxpayer files tax returns themselves.
Back taxes also attract penalties. With professional back taxes help, you can get an installment plan or other options that help you fix your tax matters.
Filing back taxes
Assuming you want to file back taxes on your own, how do you do it?? There are three main steps to follow;
Step 1: Collect all prior-year documentation/information needed
You need a few documents from prior-year filing. The information includes wage/income transcripts. These documents are important for selecting the forms (1099 and W-2) that you need for preparing your return. You also need information on estimated tax payments, among other credits. Other information includes investments and other income that isn’t on the IRS’s file.
Once you have these documents/information, you can review your account for credits and deductions. If needed, you can request a time extension to avoid IRS tax enforcement actions like lien, levy, or substitute
return. You’ll also need to find and comply with special processes for late returns like date-stamping and other requirements if you are back for many years.
Step 2: Complete and submit return
Taxpayers who manage to collect all documentation needed can complete their return and submit it to the required IRS unit. If you aren’t 100% sure about the process, it is better to seek expert help. Returns need to be accurate since the information present in them determines your tax payments.
If you owe taxes that you can’t settle in full, ask the IRS for a payment plan. Taxpayers can also attach penalty relief requests when filing late returns. The IRS has guidelines on penalty relief requests. Individuals with multiple returns should brace themselves for a more difficult process since processing multiple returns and managing resulting penalties/balances can be a complex affair.
You may need professional back taxes help to complete and submit multiple returns or complex processes, including sending the return to the correct IRS location.
Step 3: Monitor the tax return processing
It’s important to request for account transcripts to ensure the IRS processes your return. It’s also important to follow up on prior IRS actions such as filling of substitute returns to ensure such cases are closed.
Getting professional back taxes help
There’s more to dealing with back taxes than what is discussed above. Small errors can occur when filing on your own. The errors include, but aren’t limited to, filing on the wrong form or following rules for a different year. If you get overwhelmed, seek professional back taxes help. Tax rules change constantly. The consequences of errors are also dire. You may also lack time to handle your tax matters. Professional help may be the prudent way out.
We offer professional assistance on all matters, including back taxes help. Call us NOW or fill our form to get a free consultation from our trusted partners. We can assist with everything from tracking down documents/information you need to file late returns to resolving any complicated issues that arise. We can also handle communication with the taxman.
Tax matters should be handled promptly with diligence. If you don’t understand IRS processes or have a hard time tracing documents, filling forms, or any other tax-related matter, call us and let’s discuss your issue. Dealing with your back taxes is a free consultation away. Talk with our trusted partners and rest easy as everything else is handled for you.