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Tips for Dealing With Back Taxes and Unfiled Returns
A taxpayer who hasn't filed taxes for years may be overwhelmed at the idea of doing multiple tax returns and trying to pay a significant debt at the same time. While settling back taxes may take time, it's possible with patience and help from bc tax colorado. Below are several tips to simplify the process.
Start With the Last Filing Year
When a taxpayer is ready to file past-due returns, they should start with the last year in which they filed. For years after that, they'll need copies of documents such as W-2s, 1099s and deduction receipts. In most cases, taxpayers can get copies of their wage statements from the nearest Social Security office. A tax expert can double-check these numbers against those from the IRS to ensure that the taxpayer doesn't have any extra taxable income.
Determine How Much is Owed
Now that the necessary documents have been gathered, it's time to go through the returns and prepare them properly. At the end of each year's forms, the tax expert will determine how much, if any, is owed to the IRS. From there, each return is reviewed for mistakes that cause underreporting of taxes owed.
Submit Each Return and Make Small Payments on Debts
Send completed returns in with minimum payments on balances due. This step immediately returns the taxpayer to compliance, and the small payment shows the IRS that the taxpayer is serious about repaying their debts.
Form a Repayment Plan
After the returns are filed and minimum payments are sent, it's time to make arrangements to repay the entire debt. The Internal Revenue Service will help a taxpayer create an installment plan, which allows them to pay a set amount each month until the debt is gone.
Seek Advice From a Tax Expert
The most important step is to consult an expert with bc tax colorado. These experts can suggest potential resolutions that can help taxpayers resolve past-due bills for less. They can also give advice on dealing with the Internal Revenue Service during the installment period.
Although back taxes may seem impossible to handle, they can be resolved by following the above steps. Settling back tax bills with expert advice can help a taxpayer get back on track with the IRS.
This project was last updated 20 days ago