Filing Back Taxes - 5-Step Guide and Helpful Hints

If you haven't filed a tax return in a while, you may bestrict time limits for statute of refunds, audits and
wondering what options you have. It is in your bestcollections. You should also know that if you owe
interest to file those back tax returns as soon astaxes for other years, the refunds may be taken to
possible. You might be surprised to learn that filing backoffset those other debts.
taxes may be the simplest way to get out of your taxStep Four
problems. You do however need to protect yourselfDeal with the tax debt that is owed. You should have
and have a plan.a plan for how you will pay off your tax debts. You will
Step Onealso need a plan to protect yourself from IRS
Gather all of your information for each year you failedassessments, levys, liens and seizures. This will usually
to file a tax return. Research thoroughly any missingrequire an experienced professional to help you
information to be sure the return you file is correct. Doresolve these issues. Your plan could be as simple as
you have your W-2's, 1099's, and mortgage interestsetting up a monthly payment plan or writing a check
statements? Many taxpayers with unfiled back taxfor the full amount. Regardless of your situation, you
returns have lost their tax records. You may contactneed a plan, because ignoring the IRS can get you in
the IRS to request a wage and income transcript. Thistrouble fast.
transcript will give you the wage and incomeStep Five
information you're missing. If you were self employedPlan ahead. If you found yourself owing in past years,
you may need to work with an accountant to helpyou should do some tax planning for the current year.
determine estimates for you.You should adjust the withholding in your paycheck by
Step Twocompleting a new W-4. If you make estimated tax
Filing your past due IRS returns. The question needs topayments they should be adjusted to fulfill your tax
be asked whether to file your IRS back taxes yourselfliability.
or hire a professional. If you decide to do it yourself beHelpful Hints
sure to use reliable tax software. You should also plan1. Filing back taxes can not be done electronically.
on spending two to three hours on each tax year. OnThese returns will have to be mailed to the IRS service
the other hand, hiring a tax professional may not onlycenter. You may also choose to deliver them to a
help you prepare for filing back taxes but also deallocal IRS office.
with the IRS for you.2. Mail each back tax return in separate envelopes.
Step Three3. Mail the back tax returns via certified mail so you
Protect your refunds. You need to know there arereceive proof of IRS receipt.