Filing unpaid taxes can be a daunting task, but it is crucial to address this responsibility to avoid penalties and potential legal consequences. This guide will provide a comprehensive overview of the steps involved in filing unfiled taxes, including gathering necessary documents, understanding payment options, and seeking professional assistance when needed.
Step 1: Gather Required Documents
Before you can file your unfiled taxes, you need to gather all the necessary documents. These may include:
- W-2 forms: These forms show your earnings and taxes withheld from your paycheck.
- 1099 forms: These forms report income from sources other than your employer, such as self-employment or investments.
- Other income documents: This could include records of any other income you received, such as unemployment benefits or prize winnings.
- Deduction and credit records: Keep track of any expenses or activities that may qualify you for deductions or credits on your tax return.
Step 2: Determine Your Filing Status
Your filing status determines the tax rates and deductions you are eligible for. The most common filing statuses are:
- Single: Unmarried and not living with a partner.
- Married filing jointly: Married and filing a joint return with your spouse.
- Married filing separately: Married but filing a separate return from your spouse.
- Head of household: Unmarried and paying more than half the costs of keeping up a home for yourself and your dependents.
Step 3: Choose the Right Tax Form
The type of tax form you need to file depends on your income and filing status. The most common tax form for individuals is Form 1040. You can find the appropriate tax form on the IRS website.
Step 4: Calculate Your Tax Liability
Once you have gathered your documents and determined your filing status, you need to calculate your tax liability. This involves subtracting your deductions and credits from your total income. You can use tax software, an online tax calculator, or a tax professional to help you with this step.
Step 5: File Your Tax Return
You can file your tax return electronically or by mail. If you file electronically, you will need to use tax software or an online tax service. If you file by mail, you can download the necessary forms from the IRS website or order them by calling the IRS.
Step 6: Pay Your Taxes
If you owe taxes, you can pay them electronically, by mail, or in person at an IRS office. You can also set up a payment plan with the IRS if you cannot pay your taxes in full.
Consequences of Not Filing Taxes
Failing to file your taxes can result in penalties and interest charges. The IRS may also take legal action against you, including seizing your assets or garnishing your wages.
Seeking Professional Assistance
If you are having difficulty filing your unfiled taxes, you may want to consider seeking professional assistance from a tax preparer or accountant. A tax professional can help you gather the necessary documents, calculate your tax liability, and file your return correctly.
Filing unfiled taxes can be a stressful experience, but it is important to address this responsibility to avoid penalties and legal consequences. By following the steps outlined in this guide, you can ensure that you file your taxes correctly and minimize your tax liability.
Former IRS Agent Discloses What To Do If You Have Years Of Unfiled Back Tax Returns, NOT TO WORRY
FAQ
Does IRS always catch unfiled taxes?
What happens if you never filed taxes?
How do I find out if my tax return is unfiled?
Call the IRS, or your tax pro can use a dedicated hotline to confirm the unfiled years. 2. The IRS doesn’t pay old refunds. You can only claim refunds for returns filed within three years of the due date of the return. Everything before that is lost. 3. Transcripts help. It’s important to prepare an accurate return that matches IRS records.
What happens if I owe tax on my unfiled returns?
If you do owe tax on your unfiled returns, the IRS will use your refund toward those balances after you file. If any refund remains, you’ll receive the balance within a few weeks after the tax on your previously unfiled returns is paid.
What if I don’t file my tax return?
File your past due return and pay now to limit interest charges and late payment penalties. You risk losing your refund if you don’t file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date.
How do I file back tax returns?
Remember these tips when you’re filing back tax returns. 1. Confirm that the IRS is looking for only six years of returns. Call the IRS, or your tax pro can use a dedicated hotline to confirm the unfiled years. 2. The IRS doesn’t pay old refunds. You can only claim refunds for returns filed within three years of the due date of the return.