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5 Tips For Filing Back Tax Returns

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5 Tips For Filing Back Tax Returns

5 Tips For Filing Back Tax Returns

If you have unfiled back taxes and the IRS hasn’t begun to actively collect for these returns, begin by seeking out Legacy Tax & Resolution Services. If the IRS has not already filed  Substitute For Return(s), we would likely advise you to file the returns.  If the IRS has already filed Substitute For Return(s), your return filings must be  handled differently or you could make matters worse. Here are 5 tips to help you with filing your back tax returns;

  1. Start by finding and collecting as many of the original source documents sent to you by third parties. These include W-2s, 1099s, 1098s, 1098-T, etc. Gathering any supporting documents or receipts for any credits and deductions.
  2. If you cannot produce any of the original documentation, you can request the documents from the IRS. To do this, you would file Form 4506-T.  Plan to wait up to 60 days or more for the IRS to send the documents.  Understand the IRS only keeps these documents for a specific period of time, typically ten years.  If you are needing a copy of a previously filed tax return, the IRS only keeps these documents for three years.
  3. You may also obtain  a transcript from the IRS that lists the items reported by third parties to the IRS.  While not as informative as the original documents, this may be your only option, if you are beyond the limits for document retrieval, use Form 4506-T.
  4. Consider seeking out the services of an experienced tax professional.  An experienced tax professional will help you get your taxes to the lowest level under the law.  Remember it will be worth the additional cost of hiring an EXPERIENCED tax professional, especially if you believe you will owe taxes.  Remember any outstanding liability will also be subject to penalties and interest.
  5. Finally, if you do have a tax liability, try to make as large a payment as possible on the most recent returns.  Remember that you do have options to pay or potentially settle the debt such as an Installment Agreement, Offer In Compromise, Innocent or Injured Spouse, Penalty Abatement or even Bankruptcy , once the returns are seasoned.

Failure To Pay Penalty- What Is It and How Can I Reduce It?

10 Tips For Taxpayer With Back Tax Liabilities

 

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