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Steps To Follow When Filing Back Taxes

If you haven't filed your taxes on time this current year or even if you haven't filed them for the past several years you'd probably be surprised to find out that filing your tax return, even late, can best help your current tax troubles.  If you know you will not be able to pay the tax owed the IRS, the IRS will most likely be willing to work with you and may allow for a tax payment plan to be put in place.  Here are some simple steps to filing your back taxes:

  • Gather all necessary documents to file your taxes.  Most likely the most important form is your W-2 form.  If you have misplaced this form, you can contact the IRS and they will be able to provide you with a copy of it.  Other necessary forms include Forms 1099 from banks and other financial institutions showing interest and dividends, information on deductions (child care expenses, employee business expenses, etc), social security numbers for dependent children, and a copy of the last tax return filed.

  • Prepare your tax return.  You have several options when it comes to preparing your tax return, you can prepare it yourself, use tax help software that is available or hire a professional to help you file.

  • When it is determined how much tax you are owed the best option now is to pay off the entire amount.  If you are unable to pay off the entire amount you will most likely be able to work with the IRS in setting up a payment plan option, for more information on this please read the article "5 Methods to Get out of Tax Debt".

  • Look into ways to avoid owing money on future tax returns.  Employees can ask their employers to withhold enough tax so they will not have any tax debts to pay at the end of the year.  Also the IRS can work with you to make it possible to make quarterly payments of what is owed.

Paying taxes in a timely manner and in full avoids any unnecessary charges or interest.  If you need help with your tax debt please let us help and fill out the necessary form, our expert partners are willing to help and can save you money and time.

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