August 19, 2009

How to File Back Taxes and Avoid Future IRS Problems

There are several reasons why people do not file their taxes, and while most of them are acceptable, the fact of the matter is that even late or back taxes eventually need to be filed. Filing back taxes will in fact, alleviate or altogether avoid future problems with the IRS. Whether you have only missed filing for a single year or you have not done so since the mid 1980s, the IRS still requires that you file your taxes. In the end, it will be to your benefit, as doing so lowers the risk of being prosecuted by the IRS.

There might be occasions when all tax records are not available. This is especially true in cases of fire, flood and other natural calamities when all of a person's belongings are damaged. Good thing that tax attorneys or accountants are around to help clients reconstruct or retrace their tax records dating as far back as 15 to 20 years ago. These alternatives make the arena of back taxes clearer.

Some people would have preferred to dutifully pay for their taxes but certain circumstances, such as not having adequate funds to pay the amount due on their returns, prevent them from doing so. Luckily, they are provided with the choice of filing a missing return or back taxes. If you do this, you will not be penalized with the fee for late filing, which is a substantial 25%. Some states can in fact penalize you with larger fees even if you do not owe them any money, if you fail to complete this legal obligation.

You will definitely save a great deal of time if you are able to gather all your tax information from previous years. You can then proceed with the next step, which is to prepare your tax returns. This is the stage, though, when you need expert help the most. Not knowing whether or not you owe back taxes or knowing that you have not paid these can be a burden. This is why some clients feel that merely setting up a meeting with a tax professional to help them through the maze of forms and procedures is utterly comforting already.

Most people go on believing that electronic methods can be utilized in filing for back taxes. The IRS, however, does not accept these as they prefer to receive these requests through hand delivery or mail. To have proof that the IRS has received these tax returns, you must send them using certified mail.

Those who are aware that they owe the IRS any amount of money will be compelled to pay the applicable interest and fees. In such an instance, you can ask the IRS to help you set up a payment plan.

Depending on a person's specific situation and other aspects of his/her case, filing back taxes may be a relatively quick and easy process. However, putting off dealing with the situation and not filing or paying back taxes will only make matters worse. Increasing the amount of money due and worsening penalties are just a few of the consequences of such action.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

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