How to File Back Taxes in 4 Steps
File Back Taxes in Minneapolis can be tricky and there are 5 steps or guidelines you should follow. Pat yourself on the back because you are trying to get your back taxes filed. If you don't file, you still owe money and will experience other problems. Any tax liabilities more than 10 years old are negated. If you are liabilities less than 10 years old, ignoring the IRS or failing to file will result in more IRS penalties and forceful actions such as lien and levies that will create severe financial strain.
Obtain copies and relevant documentation in preparation to complete tax returns. If you don't complete a tax return the IRS will complete a "Substitute Return" which is one tax return for you for all the years you did not pay. If the IRS has already done this then you need supporting documentation to amend their return and you need to let any professional you work with know that the IRS has filed a substitute return already. Their Substitute Return tax return is not recommended because they will have no deductions or credits which will result in you owing more taxes. If you cannot find relevant documentation, it is best to contact the IRS to get all of the information you need to file. When you file you need tax documents such as a W2, 1099 as well as other documents supporting any deductions you claim.
2) Contact the right Back Taxes Assistance Firm
After you have all of your relevant documents, contact a tax professional. When selecting a tax professional it is best to work with a firm that can file tax returns for you AND negotiate. Otherwise, the process becomes delayed and you will usually not get the greatest possible reduction outcome because the services are being broken out between two firms.
3) Work with Firm To File Tax Returns
You only have to file tax returns for the last seven years. Your tax professional will contact the IRS to let them know you will be filing a delinquent tax return. Filing normal tax returns for each year will get you into "compliance" with the IRS. There will be minor fees associated with using a tax firm but in the grand scheme of things these fees are minor for what you will totally save usually. After you file your tax returns you will know how much you owe the IRS.
4) Understand Options To Reduce and Paying you Debt
Next, if you cannot pay the amount you owe, then you can work with your tax negotiation firm to come up with the best way for you to reduce and pay off your taxes. In many cases, you can submit an Offer In Compromise (OIC), however, this option is only available if the IRS is unsure your liabilities are correct, or they don't think you can pay--it is rare to get an Offer in Compromise approved usually though. If your tax professional feels there is no way to reduce your tax debt, and you cannot pay the total sum immediately, then you can request a PPIA (Partial Payment Installment Agreement). PPIAs come usually in a 60-month payoff term. If you owe more than 25K, your tax professional will submit form 433F (Collection Information Statement), and Form 9465 (Installment Agreement Request) on your behalf.
If you are in need of a trusted firm that can help you Tax Consultant Minneapolis visit our website.