How to Deal With Past Due Tax Returns

On: June 12, 2020

Filing tax returns is compulsory for all U.S. residents. If you’re not filing intentionally, you’re committing a crime. IRS can investigate the matter that may lead to severe penalties. So, if you continue to suppose it’s an honest plan to not file returns, then you might need to change your thinking. Rather wherever finances are going to be involved likelihood is that your legal position regarding tax returns would possibly turn up. If you know you owe IRS money, IRS is always willing to work with you if you come forward. Unable to file tax returns can disqualify you for disability benefits, your loans regarding education or home financing will not be approved. And in many other aspects of life. So if you haven’t filed yet, you better get your things in order and file all past due returns before the authorities get to you and penalize you. Once the IRS starts to investigate you, then you will not have any such option. That means you will not be given a chance to file your tax returns even if you wanted to before they impose penalties. Filing tax returns may be the easiest and fastest way out of back tax issues, but need to protect yourself through the process.

Steps to Filing Past Due Tax Returns

Steps in filing past due tax include:

Gather All Documents

When did you last file your tax returns? Do you still have all the documents? If you’re unable to find the desired documents, you can get them from the IRS by paying a small fee.

Preparing Tax Returns or Hiring Tax Professional

Filing for tax returns is a time taking task. Year should be put in right as it can be very critical to do it yourself without any professional help. It is advisable to hire a professional for this task because s/he will be able to negotiate according to your situation and help you deal with the IRS in a more fair and beneficial way.

Tax Refunds

You may not know this, but many late filers are also entitled to tax refunds. The time limits for a rebound, debt collection, and audits are strict. In most cases, you will have three years from the date your return was due before your refund “expires.”

Pay off Your Tax Debts

Devise a  plan to pay off your tax debts if you owe the IRS money. IRS can make an installment plan for you to pay your debt.

Offer in Compromise

An offer in compromise is a little complex. IRS can take payments from you in small installments if you’re unable to pay a big amount. Not paying your debt on time can lead to freezing of your accounts and the IRS getting a hold of your car and house.

Conclusion

Past tax returns can either be filed on hardcopy (paper) and submitted to your local IRS Service Center (by hand or mail). Tax return software can also be used to help you out in the preparation of your returns, but you still need to print them out and mail them. Use a certified mail service only. If you’re thinking of delivering it by hand, then make a photocopy of the returns and get it stamped by the IRS representative and keep the copy with you for any future proof of filing. If you need tax help , always make sure to call Leading Tax Group and don’t attempt to do it yourself.