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Filing Back Taxes: A Step-By-Step Guide
Filing Back Taxes: A Step-By-Step Guide:
Falling behind on your taxes can feel overwhelming, but catching up is easier than you might think. Whether you missed a year due to life circumstances or simply forgot, here’s a step-by-step guide to help you file back taxes and get back on track. Also, keep in mind that you are not alone. Almost 1 million Americans are currently dealing with back tax issues.
1. Gather Your Records
Start by collecting all necessary documents, including W-2s, 1099s, and receipts for deductions or credits. If you’re missing forms, request copies from your employer or financial institution. You can also retrieve prior-year tax transcripts from the IRS website. You want to start here because the IRS has these forms and already knows how much you owe; you want to file and report the proper amount the first time.
2. Download the Correct Tax Forms
Back taxes must be filed using forms specific to the year in question. Visit the IRS website to download the appropriate forms, instructions, and schedules. For individuals, this will be your Form 1040. But you may also have payroll tax issues and entity issues that need to be resolved as well. If this sounds confusing, that's because it is. If you're dealing with this issue, reach out to us at Liberty Tax Defenders as we've helped our clients save millions of their hard-earned money!
3. Complete the Tax Returns
While this may sound like a no-brainer, this is often the most confusing part. Nevertheless, you'll want to either manually complete the necessary tax forms manually or use tax preparation software designed for previous years. Pay close attention to any changes in tax laws that may have applied during those years.
4. Pay What You Owe
If you owe taxes, try to pay as much as possible to reduce the total penalties and interest. The IRS offers payment plans if you can’t pay the full amount immediately. At Liberty, we can also help negotiate other settlements as well.
5. Submit Your Returns
Send your completed returns to the IRS by mail or electronically, depending on what’s available for the tax year you’re filing. For state taxes, check your state’s tax agency for filing instructions.
6. Stay Proactive
After filing, monitor your account for any updates or notices from the IRS. Going forward, aim to file on time to avoid penalties and interest. Also note that any agreement you reach with the IRS is contingent on staying current on filings and payments for the next 5 tax years.
Filing back taxes is a responsible step toward financial peace of mind. Don’t delay—take action today to resolve your tax obligations and stay compliant. Start by contacting us at Liberty today for your FREE consultation (817-995-5008) and get help with resolving that tax bill!
Cheers!
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Or, email us at: info@libertytaxdefenders.com for your FREE copy.
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