Do you have any unpaid taxes? Unfortunately, just because you don’t file your taxes or pay the IRS doesn’t mean you will be free from paying forever.
The IRS will catch up to you in time. And you will face penalties and interest.
If you haven’t paid some of your taxes, now is the time to file back taxes. What are back taxes? They are unfiled tax returns from previous tax years.
Filing your taxes can seem like a long and confusing process. But, you have nothing to worry about. This article will teach you how to file back taxes pain-free.
Why Do You Need to File Back Taxes?
The most important reason to file your IRS back taxes is that you don’t want to be hit with fines in the future.
While technically there is no statute of limitations on how long you have to file, if you don’t file after 6 years, the IRS will consider taking action against you.
However, if you wait more than 3 years to file, you won’t be able to claim any refund for the tax year you are filing. Therefore, filing back taxes within 3 years is the ideal situation.
How to File Back Taxes
The first thing you need to do is collect copies of the most previous tax return you filed. You should also find W-2s, 1099s, or any other tax documents you have.
If you can’t find the right information, then you need to request documents from the IRS. Form 4506-T lets you get a transcript of your tax return information. It will give you 10 years of data.
Once you have all the paperwork, you need to sort them by year. If you owe back taxes on multiple years, you need separate forms for each year.
For example, you must use 2019 tax return forms to file a 2019 tax return.
You can use online tax software to help you fill out the information. However, you cannot submit any back tax paperwork online. Instead, a paper copy needs to be sent to the IRS.
While online tax software is a good tool to use, you are more likely to get better results from hiring a tax professional. This is because they will have more knowledge on tax compliance and working with the IRS.
If you’re still feeling overwhelmed with how to file back taxes, that’s okay. You can ask for back taxes help from tax experts like those at Silver Tax Group.
Financial professionals are ready to help you with all the paperwork you need to file, stress-free.
Now you know how to file back taxes. The process does take a lot of paperwork, but you should feel confident with this guide that you can handle it yourself.
If you’re still feeling weary, definitely contact a professional. Don’t wait any longer to file your back taxes!
For more related information, make sure to check out other articles in the Finance section, located under Business.