Filing back taxes is one of the most important things you can do as a taxpayer. Regardless of whether you can settle tax debt in full, taxpayers are required to file all back taxes. Some taxpayers may think it’s not a big deal if they don’t get back tax help. However, not filing a required tax return is a big problem with the IRS. For instance, if you don’t file back taxes, the IRS can hit you with interest and penalties. In other words, your IRS back taxes issue will get a lot worse if you fail to file. Lastly, when filing back taxes, take extra care. This is because the IRS examines IRS back taxes with extra scrutiny. If you aren’t sure how to go about filing back taxes, call us for tax relief services. Our team is ready to help you settle tax debt for good.
The Importance of Filing Back Taxes
You can avoid getting into more trouble with the IRS by filing back taxes. In other words, if you don’t get back tax help, your IRS back taxes situation may get a lot worse. For instance, here are a few reasons why filing back taxes is important.
You can avoid interest and penalties by filing back taxes
Filing back taxes can help you avoid IRS-imposed interest and penalties. In other words, filing back taxes now may limit interest charges and late payment penalties to your existing tax debt. This is because when you fail to get back tax help, you don’t know how much in taxes you owe. Likewise, if you don’t settle tax debt you continue to be charged interest and penalties on your balance. Therefore, in order to get a handle on your back-tax situation, you should file all back-tax returns. If you don’t file tax returns, the IRS will know and may file your returns for you. In the event that the IRS files your returns, you may end up owing more than you should. Therefore, take control of your own tax situation and file all back-tax returns.
You can claim a refund by filing back taxes
Another reason for filing back taxes is you may be eligible to claim a refund. If you don’t file your back-tax return, you risk losing your refund. Likewise, if you’re due a refund for withholding or estimated taxes, you must file to claim it within three years. In contrast, you will forfeit your potential refund if you file after three years. The IRS holds your refund until the past due return is received.
Protect your Social Security benefits by filing back taxes
Getting back-tax help can also protect your Social Security benefits. For instance, self-employed individuals who don’t file tax returns will not have their income reported to the Social Security Administration. Therefore, you will lose any credits you’d otherwise get toward retirement or disability benefits. As you’re thinking of long-term financial security, filing back taxes plays a large role. In other words, if you don’t file back taxes, you can lose basic social services that the country provides. If you need back tax help, call the tax relief services team at FinishLine Tax Solutions today.
You can avoid trouble getting loans by filing back taxes
Not filing back taxes can also get you into trouble with creditors. For instance, approval for a loan may be delayed if you don’t file back taxes. In addition, there are some cases where you may need to submit filed tax returns to the following:
Additionally, you’ll need to provided copies of tax returns if you want to:
Buy or refinance a home
Get a loan for a new business
Apply for federal aid or higher education
How do I File Back Taxes?
Filing back taxes can be a fairly simple process if you have the right help. However, the key to successfully filing back taxes is to do it quickly, and not wait. With that said, here are a few steps to take when you need to file back taxes.
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Gather the right information
First, gather all the information you need to file your past-due return. For instance, some of the information you may have to gather is:
- Copies of your W-2 or 10-99s. You can request these transcripts from the IRS.
- In addition, gather any information regarding self-employment, investments and other income not on file with the IRS.
- Next, review your tax situation and make note of any deductions or credits. In this situation, tax relief services professionals can be very helpful.
- If you need more time to file a late return, bring that up with the IRS. In this case, tax relief services professionals can also be very helpful.
- Lastly, make sure you know for how many years you need to file back taxes. Typically, the IRS requires that you file returns for the current year, plus the past six years.
Complete your back-tax returns
Now, it’s time to complete your back-tax returns. Here are a few important things to keep in mind when filing back taxes.
- Make sure your tax returns are completed accurately. In other words, double-check your work to make sure all your income is included.
- If you owe IRS back taxes, but can’t pay, explore the tax relief services option. A professional at FinishLine Tax Solutions can help you settle your tax debt.
- At this time, you can also attach a penalty relief request to your tax returns. In other words, this form is for requesting that the IRS remove some or all penalties to your tax debt.
- Next, make sure you send your tax return to the right IRS location. Here again, it would be helpful to work with a tax relief professional.
- Lastly, you’ll want to make sure you have proof that you filed back taxes. In case the IRS doesn’t process your return, you’ll need proof that you did. Similarly, if you start receiving collection notices from the IRS, you’ll want proof that you filed taxes.
Keep track of taxes going forward
Going forward, you’ll want to make sure you’re up to date on filing back taxes. For instance, make sure you get confirmation from the IRS that you have no tax matter outstanding. In this case, it’s beneficial to work with a tax relief professional. A tax resolution expert can deal directly with the IRS so you don’t have to.
What if I can’t pay my back taxes?
One of the downsides of filing back tax returns is you may not be able to pay back taxes. However, there’s no way of getting around this issue without settling back taxes. Fortunately, the IRS offers several tax relief options if you cannot pay back the taxes you owe at once. Working with a tax resolution professional can help you navigate a tricky tax situation. Additionally, a tax resolution expert can determine which tax relief plan is best for you. There are many tax relief services out there from which to choose. However, each tax relief program is different. Which one is right for you depends on your specific tax situation. Therefore, working with a tax relief professional will help you determine the right course of action for you.
How to settle back taxes
If after filing back taxes you learn you owe more than you can pay, there are options. For instance, you can apply to the IRS Fresh Start program. In essence, the Fresh Start program provides three payment options in which taxpayers can affordably pay back taxes. Generally, the Fresh Start program is for individuals who owe the IRS $50,000 or less. Additionally, Fresh Start program participants usually pay back taxes in under six years. There are other methods of repayment the IRS offers to settle back taxes. Here are a few ways you can settle your tax debt if you can’t afford to pay all at once.
IRS Fresh Start Program
The IRS Fresh Start program offers three ways to settle tax debt. Additionally, the Fresh Start program is typically for individuals who owe less than $50,000 in back taxes. With the Fresh Start program, taxpayers can affordably settle tax debt in under six years. The IRS offers three options for paying back taxes with the Fresh Start program.
Taxpayers may qualify for tax relief through Installment Agreements. With an Installment Agreement, you pay off your tax debt in affordable monthly payments. In other words, you don’t have to pay off your tax debt in one fell swoop. The professionals at FinishLine Tax Solutions will negotiate a payment amount to get the best outcome for you. Our team can help negotiate payment amounts and periods to ensure you get on the road to financial freedom.
Offer in Compromise - Filing Back Taxes
The Fresh Start initiative also provides taxpayers with Offer in Compromise as a tax relief option. However, it can be difficult to negotiate an Offer in Compromise. Therefore, it’s beneficial to work with a tax resolution services company. A tax relief expert can help you negotiate an Offer in Compromise. In the event that you’re approved for an OIC, you will only have to pay back a fraction of what you owe. If you work with FinishLine Tax Solutions, your chances of getting a better OIC deal will increase. We have years of experience dealing directly with the IRS. Therefore, we’ll be able to negotiate the right deal for you. If you’re ready to become free from your tax debt, give us a call. Our team will help you navigate the tricky terrain of tax debt relief.
Tax Lien Withdrawal
Another option via the Fresh Start initiative is the tax lien withdrawal. In this case, taxpayers agree to pay their taxes via a direct debit payment. Additionally, the IRS increases the amount a taxpayer must owe before they can be served a tax lien. The current threshold amount is $10,000. However, in some cases, a taxpayer can be served a tax lien if their balance is less than $10,000. In other words, if you are facing a tax lien, call the professionals at FinishLine Tax Solutions right away. Our team will do whatever we need to have it released. Additionally, we’ll examine your tax relief options for tax debt resolution. You can trust that our team will continue to work in your best interest.
Who Qualifies for the Fresh Start Program?
There are a variety of limitations on who can qualify for the IRS Fresh Start initiative. Furthermore, some of the most common limitations include:
- A self-employed taxpayer must show proof of a 25 percent drop in their net income.
- Taxpayers must not earn more than $200,000 a year if they’re married. Additionally, single filers should not make more than $100,000 a year.
- The total tax debt balance for the taxpayer must be lower than $50,000.
It can be confusing to understand whether or not you qualify for the IRS Fresh Start program. For that reason, it can be helpful to work with a tax resolution professional. Our team can help you negotiate a tax settlement with the IRS so you don’t have to deal with them directly.
Other tax debt settlement options
There are other tax debt settlement options to choose from. Additionally, we can help you apply for a Penalty Abatement. In other words, we can help you remove some of the penalty charges you have on your tax debt. Additionally, if you are in a tough spot financially, we can help you apply for Currently Not Collectible status. In this case, the IRS will deem you as “currently not collectible.” In other words, the IRS will stop all collections on your account for a period of time. Our team of tax experts knows how to get our clients out of debt with professional tax relief services. Give us a call today and we can get you on the road to financial freedom.
Get help filing back taxes
Do you have back taxes to file? If you can’t remember the last time you filed taxes, you probably do. FinishLine Tax Solutions has been in the business of helping customers out of tax debt for years. Our team of experienced tax professionals has the experience you need to become tax debt-free. If you’re struggling to pay back taxes or need to file back taxes, call us today. The most important thing you can do during this time is to act and act fast. We’re looking forward to providing you with top-notch tax relief services.
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