Filing Back Taxes in a Few Simple Steps

by Manny Davis Jr.

Filing any back taxes is really important. Non filers are given the harshest of the IRS punishments if the Internal Revenue Service tracks down them before they deliberately file. People who think the Internal Revenue Service won't catch them are wrong. Ignoring the IRS can also lead to the IRS filing tax returns for you, while giving you no benefit of the doubt on any deductions and you will likely end up owing a lot more money than if you did it on your own.

Gather Required Documentation
Get a hold of copies and relevant documentation in preparation to complete tax returns. If you fail to complete a tax return, the IRS will complete a "Substitute Return" which will count as tax returns for all the years you did not file. When the Internal Revenue Service does this for you, you will need to hire a tax relief specialist and change your return to save money. The Internal Revenue Service Substitute Return tax return will have to be modified to take deductions you are allowed to lower your tax bill. If you can't find required tax documents, it is suggested to contact the IRS to get all of the information you will need to file. When you file you need W-2's as well as other documents supporting any deductions you claim. If you cannot obtain old W2's, you can use the alternative form which is IRS form 4852.

Find a Good CPA, Tax Attorney or Enrolled Agent
When you have gathered all the tax filing information needed or you need assistance acquiring the documentation, find a reliable a BBB certified tax firm. When selecting a tax relief expert it is best to work with a firm that can file unfiled returns for you and can negotiate. You will likely get the best outcome if you have the same company filing and helping you handle any taxes owed that you cannot pay.

Work with the Tax Professional you Chose to File Back Taxes
You will only have to file tax returns for the last seven years. Your tax expert will contact the IRS to let them know you will be filing delinquent tax returns. Once the returns are filed, you will be back into compliance with the Internal Revenue Service. There will be charges by hiring a tax firm but after everything is considered these charges are well worth the money you will save. Once unfiled returns are completed and send to the IRS, you will know how much you owe the IRS or how much the IRS owes you.

Understand Options to Pay Back Taxes
If you cannot pay the amount owed to the IRS, work with back tax relief firm so they can evaluate your monetary situation to find the most logical way to pay for you. Depending upon your monetary condition you can choose to pay the tax debt over an extended period of time through an installment agreement or you may be able to settle the back taxes for less than the tax amount owed by applying for an offer in compromise, declaring financial hardship or setting up a partial payment plan.

About the Author
Manuel Davis Jr. is a CPA and IRS Tax Reduction Expert for BackTaxesHelp.com. For assitance with Filing Late Tax Returns and/or Paying Back Taxes give us a ring or contact us.