| Filing back taxes can be tricky and there are 5 steps | | | | process becomes delayed and you will usually not get |
| or guidelines you should follow. Pat yourself on the | | | | the greatest possible reduction outcome because the |
| back because you are trying to get your back taxes | | | | services are being broken out between two firms. |
| filed. If you don't file, you still owe money, and will | | | | 3) Work with Firm To File Tax Returns |
| experience other problems. Any tax liabilities more than | | | | You only have to file tax returns for the last seven |
| 10 years old are negated. If you are liabilities less than | | | | years. Your tax professional will contact the IRS to let |
| 10 years old, ignoring the IRS or failing to file will result in | | | | them know you will be filing a delinquent tax returns. |
| more IRS penalties, and forceful actions such as lien | | | | Filing normal tax returns for each year will get you into |
| and levies that will create severe financial strain. | | | | "compliance" with the IRS. There will be minor fees |
| 1) Prepare: | | | | associated with using a tax firm but in the grand |
| Obtain copies and relevant documentation in | | | | scheme of things these fees are minor for what you |
| preparation to complete tax returns. If you don't | | | | will totally save usually. After you file your tax returns |
| complete a tax return the IRS will complete a | | | | you will know how much you owe the IRS. |
| "Substitute Return" which is one tax return for you for | | | | 4) Understand Options To Reducing and Paying your |
| all the years you did not pay. If the IRS has already | | | | Debt |
| done this then you need supporting documentation to | | | | Next if you cannot pay the amount you owe, then you |
| amend their return and you need to let any | | | | can work with your tax negotiation firm to come up |
| professional you work with know that the IRS has filed | | | | with the best way for you to reduce and pay off your |
| a substitute return already. Their Substitute Return tax | | | | taxes. In many cases, you can submit an Offer In |
| return is not recommended because they will have no | | | | Compromise (OIC), however, this option is only |
| deductions or credits which will result in you owing | | | | available if the IRS is unsure your liabilities are correct, |
| more taxes. If you cannot find relevant documentation, | | | | or they don't think you can pay--it is rare to get an |
| it is best to contact the IRS to get all of the information | | | | Offer in Compromise approved usually though. If your |
| you need to file. When you file you need tax | | | | tax professional feels there is no way to reduce your |
| documents such as a W2, 1099 as well as other | | | | tax debt, and you cannot pay the total sum |
| documents supporting any deductions you claim. | | | | immediately, then you can request a PPIA (Partial |
| 2) Contact the right Back Taxes Assistance Firm | | | | Payment Installment Agreement). PPIAs come usually |
| After you have all of your relevant documents, | | | | in a 60 month payoff term. If you owe more than 25K, |
| contact a tax professional. When selecting a tax | | | | your tax professional will submit form 433F (Collection |
| professional it is best to work with a firm that can file | | | | Information Statement), and Form 9465 (Installment |
| tax returns for you AND negotiate. Otherwise, the | | | | Agreement Request) on your behalf. |