| Hopefully you never find yourself in a situation in which | | | | it. |
| you have to file and pay old taxes. As long as you file | | | | 3. Send your returns to the proper address. If the IRS |
| your return every year you will never have to face | | | | sent you a notice to file your back taxes they also |
| this. But no matter how hard you try to avoid this, you | | | | included an address where you can send your |
| never know when something will happen that will put | | | | information. If they did not tell you where to send your |
| you behind the eight ball. | | | | information, simply forward it to the same address that |
| It is important to know how to file and pay taxes that | | | | you always use. |
| you owe. Even though there are a lot of steps in the | | | | Now that you know how to file old taxes you need to |
| process, you should not shy away if this is something | | | | move onto a more important subject: how to pay any |
| you need to do. The longer you go without filing back | | | | money that you owe. |
| taxes and paying what you owe the worse things are | | | | 1. Lump sum payment. Once you file your back taxes |
| going to get. | | | | you will see once and for all how much you owe the |
| Before you can pay any old tax, you need to file any | | | | IRS. If the number is manageable you should pay your |
| late returns. No matter how many you have you need | | | | debt in one lump sum. This will allow you to close this |
| to go through them one at a time. If you are worried | | | | chapter of your tax life without further delay. |
| about how much work this entails you will want to hire | | | | 2. Installment agreement. This is a common plan for |
| a tax professional. Here are several steps to follow to | | | | paying the IRS and/or your state any money you owe |
| file back tax returns: | | | | in back taxes. Additionally, this is the easiest type of |
| 1. Collect all the necessary information for all the years | | | | payment plan to setup. With an installment agreement |
| that you are filing. You need all your old documents | | | | in place you will pay a particular amount of money |
| including W-2's, receipts, and much more. If you cannot | | | | each month until your debt is paid off. |
| locate your W-2, the most important document, speak | | | | 3. Partial payment installment agreement. This is similar |
| with your employer. If they do not have what you | | | | to an installment agreement, but there is one major |
| need you can obtain the information from the IRS. | | | | difference: you will not pay back your entire tax liability. |
| 2. Start the preparation process. You have two | | | | Instead, you are "settling" with the IRS and agreeing to |
| options: you can file your own back tax returns, or you | | | | pay less than what you actually owe. |
| can hire a professional. If you have several returns, | | | | If you find yourself having to pay and file back taxes |
| and are worried about the complexity of your situation, | | | | the above information should guide you from beginning |
| the money it takes to hire a professional is well worth | | | | to end. |