Tax Relief Blog
DIDN’T FILE BACK TAX RETURNS? DO IT NOW
Facing the back tax returns can sometimes overwhelm people. Many taxpayers, be it individuals and businesses, balk at the word ‘back tax returns’ because they owe Uncle Sam which quickly escalates as interest and penalties are assessed. Many taxpayers, be it individuals and businesses live in constant fear assuming the worst (most of the time in a dramatic way). Most of the time they just wait for the ‘back tax returns tsunami’ take over them or thinking that these problems will just go away. But that is not so. Tax problems do not just go away. These problems have to be faced head on because you never know that the problems you are tackling might just be an imagination or even worse bring you face to face with the dreaded IRS. Let’s just look at the pointers below to have a basic idea about what back tax returns are, what happens when you face them and so on.
What are back tax returns?
Back tax returns are taxes that you owe the government for the past years. When you have not paid your taxes for a couple of years at a stretch you will incur interest and fines on the back taxes returns for the previous years, until the back taxes returns are paid in full.
Are unfled back tax returns a crime?
Possible!! Not filing back tax returns is could be a criminal offense. People who do not file their back tax returns can be punished for up to one year in prison for each unfiled year and a fine of $25000 each year. Even if you know that you need to pay taxes and you had filed your back tax returns and yet did not pay them, it wouldn’t be considered a criminal offence. But still, the back tax returns are assessed with penalties and interest.
What happens when the IRS finds out?
If the IRS finds out about your back tax returns, they will first begin by contacting you in one of their few ways. The way they will contact you depends on how seriously the IRS is taking your case. Depending upon your history, you can either be targeted as a criminal non filer or a non criminal non filer. If the IRS decides that you are criminal non-filer, the IRS will correspond with you by either sending a letter or by telephone requesting that you file your back tax returns within a 30 day period of their correspondence. An IRS agent might also pay a visit to you to request that you file the back tax returns directly with him as soon as you can. The IRS will also file the back tax returns on your behalf with your permission for which they can legally do. If you are visited by an IRS criminal investigator, it means that the IRS has started up a criminal investigation for your unfiled back tax returns.
What are the steps to handle back tax returns?
1) First and foremost, you must gather all your necessary documents. This may sound doubtful, tough and complicated; you probably do have everything you need. Although you might have to look around to find it but you should be able to find what you need.
2) After you have found and collected all your necessary documents, you have to get hold of all the necessary tax forms, which means if you are filing 2004/2005/2006/2007/20082009/2010/2011 back tax returns, you have to use the back tax returns forms of that particular year. You can get hold of the past forms by either
Visiting your local IRS office.
Or download the forms from the IRS’s website.
Or call the IRS forms department for the forms which will be mailed out in a week or two.
Or you can ask a tax professional for those forms.
3) After you have the forms you can either hire a tax preparation professional or use a software program. Whatever you choose, you will need professional help to file the back tax returns. Though it will cost you to hire a professional, it is worth it because if you have to file old tax returns you better be sure you are doing it in a proper manner.
4) After you have filed up your back tax returns, send them to the IRS.
If you need professional help, Mike Habib an IRS enrolled agent is the best person to contact. The founder of www.myirstaxrelief.com, Mike will study and examine your case help you file you handle and file back tax returns. Call him today 877-788-2937.
