When it comes to managing taxes in the US, one of the most challenging issues is likely to be the safe handling and management of your past due tax returns. This is an issue that goes by many people, and then eventually brings back some rather interesting (read: terrifying) results in the end.
To avoid being hit with a tax nightmare, you should work with an accountant to find the easiest way to go about filing past due tax return solutions. Taking the time to work this out is likely to give you a much simpler, easier route towards finding a conclusion everyone can be happy with.
Gathering Documentation
Whether you take this on with an accountant or you wish to do it yourself, the rules still apply. Start off by getting access to all of your W-2s and also your 1099 forms, if you have any. This will be used to accurately report your income.
Should you fall into the threshold for refunds and deductions then make sure you look into this and find the corresponding receipts and records. Without proof, you won’t be accepted.
Is any of your documentation missing? Then you need to get in touch with the IRS. File a 4506-T form with the IRS and they will get in touch with you as soon as they can. This will give you1099s, 1098s and W-2s that you need to support all of the information that you will be trying to provide.
Keep in mind this can take as much as 45 days, so process the request accordingly and allow the IRS the time needed before getting involved.
Preparing Forms
Now that you have the majority of the needed minor information ready, you need to be ready to take it to the next stage. Get all of your forms back from the government and then begin to prepare your late back tax returns. All you need to do is get information from the previous year and fill it in. you cannot complete these forms using the instructions from this current tax year, though.
Make sure that all of your details mimic the right financial year and that you aren’t confusing data from one year to the next. This is a common issue, and one that can vastly slow down your progression overall. Many people mistakenly create a mishmash of information from one year to the next, which obviously can create conflicts.
Once you are happy with the accuracy of the information prepared, submit the forms to the IRS provided on the 1040 Form instructions. Remember to go through all of your claims and your numbers with a trusted and reputable CPA. They can help to find the limitations in what you are suggesting and also if there are any discrepancies from what you claim and what the numbers say.
This is a very important service, and one that you should make the most of. After all, late filing is better than no filing at all for the IRS!
