With hectic lifestyles, we often forget or make mistakes, and this can result in back taxes filing. Surprisingly, a lot of people file taxes late, forget about taxes or just do not want to pay their taxes. Even so, those who make enough income are required to file a tax return. Take time now to understand how to file late returns, considerations for the late filer and where to file.
The first step is to gather any tax forms, receipts, tax software W-2 forms and 1099 forms for the back taxes filing. Essentially, filing back taxes requires all the standard forms and receipts used on a normal tax year. Make sure to use forms for the correct tax year.
Complete the paperwork as required and check for the deductions for which you might qualify. Use the instructions to calculate the taxes and double-check your figures. Most people are not aware they can get a refund even when filing tax papers late and there is a stipulation that refunds are only allowed if the taxes are filed within a three-year span of the original due date.
If a person owes additional tax for back taxes filing, it is important to pay the proper tax in full or the very least, make a payment. Write a check for the payment and include it with the return. Make arrangements for a payment plan using Form 9465, and mail the return with a check according to instructions on the form.
While it is possible to complete back taxes filing by completing the paperwork and sending the form through the Postal Service, the delay in filing causes many people to be anxious that the return is sent to the IRS as quickly as possible. One option is to file online. There are a couple of options for filing late returns online.
Visit the IRS website and locate the link for Free File if taxes are six months late. This gives you until October 15 of the year the taxes are due. Contact your state and follow instructions for filing back taxes.
Another site, Prior Tax offers an online site that makes back taxes filing easy. People can find old IRS forms from previous years and locate old returns that may be needed for filing. Prior Tax charges a minimum of $50 to file federal and state taxes.
You might want to contact legal counsel or an accountant for guidance, help with forms and recommendations. There are federal laws enforcing the statute of limitations on unpaid taxes. The IRS may take as long as 10 years after the filing of a return to collect taxes and there can be penalties and jail time.
If a person owes taxes and fails to file, the IRS can file a return using an estimation of income. This substitute form will not account for all deductions to which you might be entitled. It is often to less expensive to file a late return rather than none at all.
Taxes may not be filed on time. The agency does not want to prosecute people that make simple mistakes. Fixing a tax problem with Back Taxes Filing can prevent more severe consequences.