I have unfiled tax returns. What should I do?
Seven million taxpayers failed to file their taxes in 2014. Are you one of those individuals? No one is keen on filing their taxes, but not filing them at all is never a wise move. The Internal Revenue Service is a powerful collection agency. They are also relentless in their pursuit of the money owed to them. Getting on the wrong side of the IRS and having years of unfiled or back taxes is one of the worst moves you can make.
No matter the reason, if you have unfiled tax returns, it is time to rectify the situation. It is only a matter of time before the IRS catches up with you and demands that you pay them the back taxes. Often, the amount they claim you owe will be far more significant than the amount you actually owe, and it’s up to you to prove otherwise.
Before we get into it, if you have a tax problem or years of unfiled tax returns, contact our firm for a consultation or schedule a consultation, You won’t have to talk to the IRS, and our firm can provide the peace of mind you need to resolve your tax issue.
The faster you act, the better off you will be. Here are some critical steps to take if you have unfiled returns with the IRS.
What about Documentation?
- If you have back tax returns and are ready to get on the right with the IRS, your first step is to gather whatever records you can and meet with a Certified Tax Resolution Specialist.
- If you don’t have your old documents, there are ways to construct your income and expenses even when no records exist; even if they have been lost or destroyed due to natural disasters).
- If you are missing W2 and 1099 forms from past years, an Enrolled Agent and Certified Tax Resolution Specialist (CTRS) can retrieve them.
Run the Numbers
The fear of high taxes has caused many taxpayers to forgo filing their returns, but those worries are often unfounded. According to IRS statistics, a surprising number of unfiled returns may be due to a refund. Moreover, even if you don’t get a refund because you didn’t withhold any taxes, you will likely have better payment options for your back taxes by working with a tax resolution firm like ours instead of doing it on your own.
Now that you have all the documentation you need, it is time to run the numbers. And while you may not be able to get exact figures without filing the returns, you can get an idea of how much you might owe.
Work with a Professional
Having unfiled tax returns can put your financial life at risk and possibly your freedom. And while the desire to file those old tax returns and pay what you owe is commendable, now is not the time to go it alone.
When it comes time to file those unfiled tax returns and get right with the IRS, you need a qualified professional in your corner. A Certified Tax Resolution Specialist can give you the advice and guidance you need, from gathering the proper documents to filling out the necessary paperwork.
Dealing with the IRS can be frightening, but not dealing with the tax agency could be even worse. Not filing your tax returns does not mean the IRS has forgotten about you; just the contrary. The IRS keeps detailed records, and chances are they have already noticed your lack of compliance. So, do yourself and your finances a favor and file your returns as soon as possible.
You will likely need expert help and guidance to file those back taxes, and finding the right professional is a great place to start. A CTRS can help you make things right with the IRS.
File your back taxes and move on with the rest of your life.
Just knowing that you have unfiled tax returns can be a source of stress. Even if you think you can continue to fly under the IRS radar, you never know when they will reach out to you. So please do yourself a favor by filing those back tax returns now; it is not as scary as you think.
If you are in tax trouble, reach out to our tax resolution firm, and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to resolve your tax problem permanently. Visit our website, or schedule a consultation.