Importance of Filing Back Taxes With the IRS

If you have unfiled tax returns and you want to knowis best you file as soon as possible. You can't use
what your options are and what you should do, theelectronic filing service for filing your back taxes. You
answer is simple, file your tax returns as soon ascan either hand deliver it or send it via mail. If you are
possible. The longer you wait, the harsher the IRSsending it via mail then you must use certified mail to
penalties will be. Also if the IRS finds you before youmake sure that it reaches the IRS.
file, you will likely face harsher penalties and even runIf you don't have enough money to pay the back
the risk of going to prison. The good thing to know istaxes at the time of filing then you can make an
that the IRS has an unwritten policy that they won'tagreement with the IRS for a payment plan. The most
prosecute voluntary filers, even if they haven't filed in acommon form of payment agreement is an installment
decade. Some people think that because they haven'tagreement. With an installment agreement, the IRS
heard from the IRS they are in the clear. What peopleallows the tax payer to pay back the taxes owed in
don't know is that the IRS works very slowly butmonthly increments over a given period of time. If you
extremely efficiently.are having trouble recreating any W-2 forms or setting
Many people neglect to file back taxes because theyup a payment plan, contact a tax professional as soon
have lost the necessary documents needed such asas possible. A tax professional can file your returns
W-2 forms. Even if you cannot find the appropriateand ensure you get the maximum deductions, even if
forms to file, you can always use IRS form 4852you don't have all the information needed for making
which is a substitute W-2 that estimates what yourthe filing. Even if you still cannot pay this reduced
W-2 would have been for the tax filing year. You mustamount, a tax professional can work with the IRS to
obtain the appropriate tax form for the year you aresetup a manageable payment plan or settle the tax
filing, you cannot use the 2007 tax form for 2006debt amount for even less.
taxes. Once you get the necessary documents then it