If you need to file past tax returns…don’t panic and do not ignore the situation. In addition, don’t hope it will go away by itself. Gather whatever tax information you have, engage an experienced tax professional (preferably a CPA), and file the past tax returns. Only then will you be on your way to putting your tax problems behind you.
There are many situations in which a taxpayer needs to file past taxes. But don’t worry. If you have found yourself in this situation just realize that you are not alone. There are many options available to assist you. There are online programs and websites that can help you, however, consulting with a CPA or other tax professional will often be your best solution to getting them filed and then to deal with the IRS on your behalf.
If you have an outstanding tax liability with the IRS, they will actually hold current year tax refunds to cover the amount of the outstanding debt. When you file past tax return and deal with any delinquent funds owed, you can protect both current and future refunds for yourself and your family. If you continually fail to file returns, the IRS will often assess the return and file for you (often called a Substitute for Return). However, there are often deductions or credits that you could qualify for to reduce your tax liability.
Make sure to gather all pertinent records that you are able to locate. Search all files you may have to ensure that you aren’t missing anything. A tax professional may even be able to work with you if you do not have the documentation that you require. CPAs and other tax professionals are also aware of tax laws and can represent you when dealing with the IRS.
But you must realize that you need to get the returns filed. Even if you believe you owe the IRS, the tax returns still need to be filed. In some cases, you might actually be eligible for a tax refund. However, there is a statute of limitations (or a time limit) in which you can be eligible for the tax refund. By getting the taxes filed, you will have a better idea of what you owe and you will sleep better at night.
We are committed to helping you with your past tax returns. Your tax problem will certainly not go away on it’s own. Call us now at 1-888-570-1033 for a FREE consultation.