Do you think you are saving money by not filing your tax return on time? This is something that many people believe. If you have not filed your state or IRS tax return this year and you are coming off an extension you have until October 15th to file otherwise you fill face penalties and interest. If you simply have not filed for previous years, then it is in your best interests to do so as quickly as possible. Even if you cannot pay the total amount, you should still file and send in a small payment (what you can afford).
How To File Unfiled Taxes
When dealing with previous years it is in your best interests to work with tax resolution firm but this does not mean you cannot file the taxes yourself. Here’s what to do:
1) Collect All Necessary Documents – these documents include W-2, 1099, and so on. If you cannot find them, contact your former employer or the IRS.
2) Gather The Years Tax Returns You Need – If you are filing for 2007 or 2008, make sure to get the correct 1040 form if filing income taxes for the year you are filing for. You can find the correct form by searching at irs.gov.
3) Complete the Forms – In many cases tax software can help you or you can work with tax resolution firm just to review how you completed the forms to make sure there are no errors.
4) Determine if you owe taxes or if you were due a refund. Pay what you can if you owe. Most individuals, owe, and they can always work with their tax resolution firm to resolve or possibly settle their tax debt if they are faced with a significant amount.
4) Sign, Date, and send it to the IRS Address for filings. This can be found here: http://www.irs.gov/file/content/0,,id=105693,00.html
Consequences
If the IRS finds that you are not filing a return they can come after you to collect and this can be years later. Not only can they prosecute you and have you put in prison for up to one year, but they can tack on a fine of $10k for each year that you did not file. Now do you see just how bad your situation can get when you do not file back taxes?
You should not forget about penalties or interest either. The IRS loves to hit taxpayers with these fees for a variety of reasons, including not filing on time. The longer you wait the more money the IRS is allowed to charge in penalties and interest. How high can your tax debt go? Only time will tell. It would be in your best interest to not test the waters. Instead, file old tax returns as soon as possible so you can avoid a larger debt than necessary.
If you are looking to get more information on how to file unfiled tax returns as well a receive a quote for professional unfiled tax help visit BackTaxesHelp.com today.
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