Back Taxes – Essential Tips on How to File Late Income Tax Returns

If you owe taxes and have neglected to file a tax return it’s important to file a late income tax return. Let’s take a look at some of the rules, regulations and tips for filing back taxes.

If you’ve yet to file, the sooner you can file, the better off you’ll be. You have two choices: manage the process by yourself or hire a pro. Regardless of what you choose, know that you’ll need a weekend to get the job done. This is particularly true if you haven’t filed taxes in a few years.

If you’re filing late taxes or back taxes, you can use software to prepare your documents. However, you cannot file electronically. All late taxes must be filed by paper.

If you’re sending more than one year of taxes to the IRS, each year must be mailed in its own envelope.

If you have an IRS office nearby, you can hand deliver your documents and have them stamped ‘received’ when you get there.

Many experts recommend if you owe between ten thousand and twenty five thousand dollars to consider hiring an expert to help you do your taxes. And if you owe more than twenty five thousand to definitely have a tax professional help you. They can make sure you take advantage of every deduction, credit and exemption due to you. And they can take a look at past years’ taxes and make sure you didn’t overpay.

Having your past years’ taxes reviewed by a professional can often turn up credits and deductions you missed. You can then send in an amended tax form and potentially cut back on what you have to pay to the IRS this year.

If you haven’t filed taxes, know that the IRS will file a substitute return for you. However, because they don’t know what exemptions and deductions you have, the taxes they say you owe will be much higher. Filing your own return is the only way to ensure your tax liability is fair. Once you file a late return, the IRS will generally adjust your account to reflect your correct information.

Become proactive for next year’s taxes. You can pay taxes on a quarterly basis if you are self-employed and it’s always smart, if you think you’re going to owe, to set money aside. That way you’re not scrambling, come April 15th, to figure out how you’re going to pay the government.

Filing late taxes may seem like an overwhelming process. However, the longer you wait and the more you put it off, the more you’re going to owe. Get your documents together, find the forms you need either online, from a software program or via a professional tax preparer, and get your taxes filed. The sooner you do it, the better off you’ll be.

That’s it for now. Until next time Divas, wear your heels well and Be Blessed!

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