No one likes filing their taxes, but not filing them at all is never a good idea. The IRS is a powerful collection agency, and an unforgiving one. Getting on the bad side of the tax agency is not fun, and having years of unfiled returns is one of the worst moves you can make.
No matter what the reason, if you have unfiled tax returns, it is time to rectify the situation. It is only a matter of time before the IRS catches up with you and demands the back taxes paid. Oftentimes, the amount they claim you owe will be far greater than the amount you actually owe and it’s up to you to prove otherwise.
The faster you act, the better off you will be. Here are some key steps to take if you have unfiled returns with the IRS.
What about Documentation?
If you have unfiled tax returns and are ready to make things right, gather what you can and an experienced tax resolution specialist will do the rest. Oftentimes, even if you don’t have much in the way of old documentation, there are ways to construct your income and expenses even when no records exist, or have been lost or destroyed due to natural disasters.
If you are missing W2 and 1099 forms from past years an experienced tax resolution professional has the ability to retrieve these.
Run the Numbers
The fear of high taxes has caused many a taxpayer to forgo filing their returns, but those worries are often unfounded. According to IRS statistics, a surprising number of unfiled returns may actually be due to a refund. Even if you don’t get a refund because you didn’t withhold any taxes, you will likely have better payment options for your back taxes by working with a tax resolution firm as opposed to doing it on your own.
Now that you have all the documentation you need, it is time to run the numbers. And while you may not be able to get exact figures without filing the returns, you can get an idea of how much you might owe.
Work with a Professional
Having unfiled tax returns can put your financial life, and possibly your freedom, at risk. And while the desire to file those old tax returns and pay what you owe is commendable, now is not the time to go it alone.
When it comes time to file those unfiled tax returns and get right with the IRS, you need a qualified professional in your corner. A tax resolution professional can give you the advice and guidance you need, from gathering the proper documents to filling out the necessary paperwork.
Dealing with the IRS can be frightening, but not dealing with the tax agency could be even worse. Not filing your tax returns does not mean the IRS has forgotten about you; just the contrary. The IRS keeps detailed records, and chances are they have already noticed your lack of compliance. So do yourself and your finances a favor and file your returns as soon as possible.
Chances are you will need expert help and guidance to file those back taxes, and finding the right professional is a great place to start. A tax resolution expert can help you make things right with the IRS, so you can file your back taxes and get on with the rest of your life.
Simply knowing that you have unfiled tax returns can be a source of stress. Even if you think you will continue to fly under the IRS radar, you never know when the tax agency could come calling. So do yourself, and your sanity, a favor by filing those back tax returns now; it is not as scary as you think.