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Thursday, March 29, 2012
The first step is to gather any tax forms, receipts, tax software W-2 forms and 1099 forms for the back taxes filing. While the forms for back taxes filings may be similar to those for the current year, it is important to use the forms for the right tax year.
Complete the paperwork as required and check for the deductions for which you might qualify. Use the instructions to calculate the taxes and double-check your figures. Even if your taxes are late, you may still qualify for a refund, but only if you complete the paperwork within three years of the original due date.
If there is additional tax due with the back taxes filing, the filer must pay in full or make a payment arrangement. You can choose to include a check for the required payment with the return or complete a Form 9465 that is mailed with the return. Use the instructions on the form to ensure the form and check go to the right address.
While it is possible to complete back taxes filing by completing the paperwork and sending the form through the Postal Service, the delay in filing causes many people to be anxious that the return is sent to the IRS as quickly as possible. One option is to file online. There are a couple of options for filing late returns online.
If taxes are less than six months late, you can use the link from the IRS website to Free File the taxes. Taxes can be filed through October 15th of the current year in which they are due. Your state may have different rules for filing back taxes due the state.
Another site, Prior Tax offers an online site that makes back taxes filing easy. The site offers older IRS forms from year past and allows the user to locate old returns needed for filing. However, there is a minimum $50 fee to file state and federal taxes.
Contact an accountant or legal counsel for guidance, form help or recommendations. The federal laws enforce the statute of limitations on taxes that are not paid. The IRS can take as long as 10 years after a return is filed to collect taxes. Penalties can apply as well as jail time.
If the person owing taxes does not file, the IRS itself can file a return that is based on an estimation of income. This substitute form will not account for all deductions to which you might be entitled. It may be cheaper to file a late return rather than none.
Taxes may not be filed on time. The agency does not want to prosecute people that make simple mistakes. Fixing a tax problem with back taxes filing can prevent more severe consequences.