How To File Back Taxes
The number one mistake many people make with the IRS and their taxes is failing to properly file a tax return. Failing to file a tax return is a serious issue. Not knowing how to file back taxes is not an excuse to the IRS or states. That’s because it frequently is viewed under suspicion of not wanting to report one’s income at all. Here’s how to file back taxes and avoid tax problems proactively.
How to File Back Taxes Even if Late
Even if a tax return is late, it should always be filed for a number of critical reasons. First, it stops the clock on penalties for filing late. Second, you get on record for meeting your tax reporting requirements. Third, if you cannot pay at the time, being on file open ups the ability to request a payment plan. The IRS prefers people to make payment arrangements to pay the tax owed over time versus having to take collective action for a tax debt. Finally, there is no statute of limitations for unfiled returns. So, the IRS conceivably has an indefinite amount of time to assess taxes and penalties for returns that have not been filed.
Getting Started With Filing Back Taxes
To file a late tax return, the first step in how to file back taxes is to gather the necessary documentation needed to prepare your return. If you don’t have your prior W2 form from an employer, Tax Samaritan can obtain your wage and income transcript from the IRS as your tax representative.
Setting Up a Payment Plan For Your Late Tax Returns
If you can’t pay the tax due after filing the late return, then you will need to request approval of a payment plan, known as an installment agreement. This will suspend any further penalties and even forgo lien notices as long as payments are made timely; a great benefit in knowing how to file back taxes. If the payment plan is missed, then the IRS can initiate collections again.
Get Expert Help In How To File Back Taxes
Because of how complicated how to file back taxes can be, it’s highly advised to work with and use the help of a tax expert. Tax Samaritan is there to help and show taxpayers how to file back taxes, and we have an extensive amount of experience with late filings, out of country filings, tax corrections and similar.
Our goal at Tax Samaritan is to provide the best counsel, advocacy and personal service for our clients. We are not only tax preparation and representation experts, but strive to become valued business partners. Tax Samaritan is committed to understanding our client’s unique needs; every tax situation is different and requires a personal approach in providing realistic and effective solutions.
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Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.