Filing Back Taxes in 2022
Regular Post
Written by Craig B

Filing Back Taxes in 2022

If you need to file back taxes, this post can help. These are only common guidelines, for thorough guidelines you should consult the IRS website, an IRS agent, or an enrolled agent, such as Tax Debt Advisors, Inc.

How to File Back Tax Returns

Step 1: Gather your tax papers

To file your back-tax returns, you going to need the W-2’s or 1099 forms you got for those tax years for reporting your income. If you’re qualified for deductions and credits, you are also required to gather any receipts or other supportive records that demonstrate your qualifications to claim them.

Step 2: Petition for missing papers

If you’re lacking any tax papers from the last decade, you can petition a copy from the IRS by filing Form 4506-T.

  • Only use this form to petition for W-2s, 1099’s and possibly 1098’s that could provide support for many of your deductions.
  • Although you won’t receive an identical version of the original form, the IRS will give you with a duplicate of all related information, in which is satisfactory to file back tax returns.
  • It may take the IRS up to forty-five days to process your petition.

Step 3: Download previous year IRS tax forms

You need to always file your back-tax returns on the primary forms for the tax years you’re filing for. You could always search the IRS website to find the forms, but for faster access, you should utilize advanced tax preparing software, like TurboTax.

Step 4: Prep your back-tax returns

You can’t complete previous year tax forms using guidelines from the current year.

  • Tax laws change each year and using the incorrect guidelines could require you to prepare the return once again.
  • Verify to be sure the guidelines you are using are for the identical tax year as the return you are getting ready to file.

Step 5: Submit the forms

Submit your forms to the IRS at the address on the Form 1040’s guidelines.

  • When you owe added income tax for any of the previous years, be sure to make as large of a payment as possible to decrease any interest charges.
  • Different from tax penalties that stop adding when the limit is reached, monthly interest still gets added until until the tax is paid off.
  • After the IRS gets the tax returns, you should expect to get a notice of the clear-cut penalty and interest charges you will be responsible for paying.

Source

  1. TurboTax – Taxes, I. (n.d.). How Do I File Back Tax Returns? Retrieved October 16, 2020, from https://turbotax.intuit.com/tax-tips/irs-tax-return/how-do-i-file-back-tax-returns/L535BxMms

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Can The IRS Take Your 401K
Regular Post
Written by Craig B

IRS Fresh Start Program

You may have heard about the Internal Revenue Service’s “new start” program and wondered if you might use it to pay off your tax obligation. But what is the Fresh Start program precisely, and how does it work?

The Fresh Start program is meant to allow taxpayers to pay off their debts in full within six years without incurring significant financial hardship. It is open to any taxpayer with a tax obligation of $50,000 or less owed to the IRS. The IRS started the program in 2008 and expanded it in 2012 to help people with their credentials and financial constraints.

The Fresh Start program streamlines the process of repaying a big tax obligation while also removing some of the hassles that come with owing the IRS large quantities of money, such as liens, levies, wage garnishments, and penalties. An extended installment plan, tax lien withdrawals, and the Offer in Compromise are the three repayment options available under the program.

The extended installment agreement is the most prevalent of these alternatives, and it is meant for taxpayers who owe $50,000 or less. This option allows taxpayers to pay off their tax obligation over a six-year period without incurring any further fines or interest. Wage garnishments, tax liens, and tax levies will all be put on hold by the IRS. This program requires the taxpayer to make monthly payments in an amount determined by their income and the value of their assets. The goal is for the payments to be affordable to the taxpayer so that they may be made on time and without financial hardship.

Taxpayers can use a direct debit payment option to pay off their debts under the tax lien withdrawal. Once this is in place, the taxpayer can request that any tax liens on their accounts be removed by the IRS. This also prevents the tax lien from being disclosed to the three consumer credit reporting organizations.

The Offer in Compromise, or OIC, program is the final option. Taxpayers who participate in the OIC program may be able to settle their debt for less than they owe. The taxpayer submits an offer based on the worth of assets that can be liquidated to pay off the debt. In calculating what the IRS believes the taxpayer can reasonably repay, the IRS will take into account the taxpayer’s ability to pay, current income and costs, and any asset equity. Because an OIC must be negotiated with the IRS and can take months to get, you may wish to enlist the services of a tax professional to walk you through the process and negotiate with the IRS on your behalf. Even then, only a small percentage of taxpayers will be successful in settling their debt for a lower sum, and if the IRS accepts the offer, their assets will be severely diminished.

Of course, there are certain extra requirements in order to be eligible for the Fresh Start program. To begin, you must be current on all of your tax returns, including those from previous years. If you have any unfiled returns, you cannot apply for the Fresh Start program, and you must file timely taxes for any subsequent years.

For many taxpayers, dealing with the IRS collections department is a terrifying prospect, but you don’t have to go it alone. If you’re not sure whether Fresh Start program is ideal for your particular tax debt situation, you should seek counsel from a specialist Acting today, whether you decide to handle your tax burden on your own or with the help of a professional, is the best way forward. Tax issues do not go away on their own, and they can cause a great deal of stress in your life and relationships. With the Fresh Start program, you know you’re on your way to getting rid of this load.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation. This family owned tax practice has been serving the public since all the way back in 1977!

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How Many Years Does The IRS Go Back To Collect On Unfiled Tax Returns?

The IRS will require any taxpayer to go back and file your last six years of tax returns. Taxpayers are encouraged by the IRS to file all missing tax returns if possible, though.

All payments can be arranged via the IRS, with several programs like installment agreements and offer in compromise settlements, among others. 

How To File Back Tax Returns

Here are five simple steps to follow when filing back tax returns:

Set Up Payment Agreement With IRS

If you cannot afford to pay back your tax returns immediately, you are allowed to set up payment agreements with the IRS. There are numerous payment options available, depending on your financial needs. If you don’t set up a plan and avoid paying the IRS altogether, the IRS can and likely will put their collections department on the case. 

Only Go Back Six Years

Before starting this process, call the IRS or a trusted tax professional. Confirm with them that you only have to go back as far as the past six years for unfiled taxes. 

Help With Transcripts

It is crucial to match the IRS’ exact records when preparing a return. Trace your income history by first requesting wage and income transcripts from the IRS. The IRS can question the accuracy of your return without this information being obtained. 

Request Penalty Abatement

It is true that the IRS can be lenient in these situations. You can request that the IRS not charge you for failure to pay or face the burden of other financial penalties. You can file a first-abatement for the first year if you qualify. Another option would be to file a reasonable cause agreement for some late filing relief. Always be aware of any penalties you may be facing ahead of time. 

IRS May Have Already Filed A Return For You

It is possible for the IRS to start a process referred to as a substitute for a return up to three years after the due date of return. Whenever you file a return to replace the substitute of return, the IRS will check the replacement return by comparing it to statements already on file. In some cases, this process can take as long as four months for the IRS to complete.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation. This family owned tax practice has been serving the public since all the way back in 1977!

More Articles About Taxes

Back Taxes
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0
Filing Back Taxes in 2022
Regular Post
Written by webtechs

How To File Back Taxes

If you need to file back taxes, this post can help. These are only common guidelines, for thorough guidelines you should consult the IRS website, an IRS agent, or an enrolled agent, such as Tax Debt Advisors, Inc.

How to File Back Tax Returns

Step 1: Gather your tax papers

To file your back-tax returns, you going to need the W-2’s or 1099 forms you got for those tax years for reporting your income. If you’re qualified for deductions and credits, you are also required to gather any receipts or other supportive records that demonstrate your qualifications to claim them.

Step 2: Petition for missing papers

If you’re lacking any tax papers from the last decade, you can petition a copy from the IRS by filing Form 4506-T.

  • Only use this form to petition for W-2s, 1099’s and possibly 1098’s that could provide support for many of your deductions.
  • Although you won’t receive an identical version of the original form, the IRS will give you with a duplicate of all related information, in which is satisfactory to file back tax returns.
  • It may take the IRS up to forty-five days to process your petition.

Step 3: Download previous year IRS tax forms

You need to always file your back-tax returns on the primary forms for the tax years you’re filing for. You could always search the IRS website to find the forms, but for faster access, you should utilize advanced tax preparing software, like TurboTax.

Step 4: Prep your back-tax returns

You can’t complete previous year tax forms using guidelines from the current year.

  • Tax laws change each year and using the incorrect guidelines could require you to prepare the return once again.
  • Verify to be sure the guidelines you are using are for the identical tax year as the return you are getting ready to file.

Step 5: Submit the forms

Submit your forms to the IRS at the address on the Form 1040’s guidelines.

  • When you owe added income tax for any of the previous years, be sure to make as large of a payment as possible to decrease any interest charges.
  • Different from tax penalties that stop adding when the limit is reached, monthly interest still gets added until until the tax is paid off.
  • After the IRS gets the tax returns, you should expect to get a notice of the clear-cut penalty and interest charges you will be responsible for paying.

Source

  1. TurboTax – Taxes, I. (n.d.). How Do I File Back Tax Returns? Retrieved October 16, 2020, from https://turbotax.intuit.com/tax-tips/irs-tax-return/how-do-i-file-back-tax-returns/L535BxMms

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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