HOW TO FILE YOUR IRS BACK TAX RETURNS

How to file back taxes

 

Nothing sets the nerves on edge quite like the need to file back tax returns. Deserved or not, the IRS has a reputation for making life difficult. (We will admit they are trying to be nicer.)

Hiding your head in the sand only makes things worse. If you don’t take care of the situation, the IRS will. The agency can file for you, place penalties on your actions, and charge interest on the money you owe.

When you do file, those late returns receive additional scrutiny from the IRS. Not fun. 

Regardless of why you missed the deadline in the first place, the best thing to do is set to work immediately on rectifying the situation. Here is all you need to know about filing back tax returns.

 

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

 

Everybody Files

Almost every taxpayer is required to file a tax return each year. Those who are not required to file are very much in the minority. The IRS keeps records on everyone who files and those who should but don’t. 

 

The IRS pursues missing returns, making life complicated for those who skipped the annual Tax Day. 

 

What Are Back Taxes?

Back taxes are any outstanding federal or state tax liability from a prior year. The IRS is most interested in those who owe the government money. They care only slightly less for those who are due a refund.

 

The process for filing back tax returns is similar to on-time returns. You need all the documents from the tax year in question. Anything you are missing, you can request from your employer, financial institution, and other entities. It’s a good idea to request a tax return transcript from the IRS to make sure you don’t miss anything.

 

Most importantly, make sure you use the correct tax form for the year you are filing. Tax law and legislation changes all the time. You need to follow the rules for the particular year for which you are filing.

 

Why Should You File a Back Tax Return?

Aside from taking the IRS spotlight off yourself, you should file a back tax return if you want to receive a refund due.

If you owe taxes, filing a return sets the stage to ending penalties and interest accruing on the amount due.

If you apply for a mortgage or other loan, or if you submit paperwork for federal financial aid, you need to provide a copy of your tax return as part of the documentation. You also need to pay your Social Security taxes to qualify for benefits. 

 

How Long Can You Wait?

The IRS accepts back tax returns for as far back as you care to make them. They prefer it, in fact. However, the IRS typically only requires the past six years of back tax returns to be filed to be considered in good standing. 

There are exceptions to the rule, however. The IRS can still choose to go back farther than six years in specific circumstances.

If you are filing to claim a refund or tax credit, you only have three years. After that, you can file, but you won’t get anything except a late filing penalty.

 

How to File a Late Return

Step 1: Gather Information

Put together a file of all the documentation you need to file taxes for the specific year:

W-2s

1099s

Bank statements

Loan statements

Documentation for tax credit opportunities

File for additional time if you need it. By doing so, you may avoid enforcement actions like a tax lien against your property, a tax levy, or a substitute return created by the IRS.

 

Step 2: Request Tax Documents from the IRS

To make sure you don’t miss anything, request wage and income transcripts as well as an account transcript for any estimated tax payments or other credits posted to your account for the year. Use Form 4506-T to request your account transcript.

Unfortunately, the transcript won’t say anything about deductions and credits you might qualify for. You will have to dig that up yourself.

Be aware; it can take the IRS up to 45 days to process your Form 4506-T. That’s 45 more days of interest accruing to your account while you wait.

 

Step 3: Identify Special Processing

Does anything need to be date-stamped? Do you need to file with an IRS compliance unit?

 

Step 4: Complete and File Returns

Once you have all the documentation you need, file those returns as soon as possible. 

 

Check each return for accuracy.

Attach a penalty relief request if applicable.

Send it to the correct IRS location.

Obtain proof of filing in case the IRS doesn’t process the return, or you are hit with compliance activity like collection notices, liens, levies, or an unfiled return investigation.

Please note: you cannot e-file your back tax returns. You need to use good old postal mail to file and make your payment.

 

Step 5: Monitor the Progress of Your Return(s)

Keep watch for compliance activity so that you can address it immediately. Also, keep an eye on your returns to make sure they are being processed as expected.

Paying Back Taxes

Now to turn your attention to the other reason for filing back taxes — paying them.

Ever since you did NOT file, the amount you owe increased due to penalties and interest. If you cannot pay the entire amount all at once, you have some options.

Set up an installment payment plan with the IRS.

Apply for an Offer in Compromise.

Request a delay on collections.

Apply for reasonable-cause assistance.

Apply for penalty abatement relief.

Until you pay your balance in full, interest continues to accrue to your account. So, the faster you pay it off, the better off you are.

 

What If You Don’t Pay?

Not paying taxes is serious business, and it has consequences beyond your dealings with the IRS. The IRS will charge a penalty for not filing and one for non-payment. If you underpaid estimated taxes, you could get a penalty for that, too. Obviously, you won’t receive any refund.

Outside of the problems with the IRS, not filing your taxes can keep you from obtaining a mortgage (at least, at a reasonable interest rate), federal financial aid, or other loans. Also, you won’t receive credits toward your Social Security benefits for self-employment income.

Contact Advance Tax Relief to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

FILING TAXES IN 2022: WHAT TO CONSIDER

 Tax Preparation, Tax Season 

The 2022 tax filing period kicks off on January 24th, allowing all taxpayers to file and send their 2021 returns. The IRS also announced that the deadline to file and pay the amount owed is April 18th instead of April 15th due to the Emancipation Day holiday.

Before filing back taxes, it's essential to know what to consider and the policies the IRS changed. Here, we provide the ultimate guide to filing taxes in 2022 by discussing critical items to note.

 

1. Child Tax Credit Payments

In March 2021, the IRS passed an American Rescue Plan, increasing the Child Tax Credit to $3,600 from $2,000. If you qualified for this program and didn't receive a cheque, you may get it in a lump sum by claiming the Child Tax credit. However, if you got advance payments, determine the proper amount to claim when filing your taxes.

When you are unsure how much money you received in an advance Child Tax credit, counter-check the letter 6419 sent by the IRS in January 2022.

In case you determine that you received less than the amount you qualify for, claim a credit on your 2021 tax return. Alternatively, repay the excess before the provided deadline if you received an excess amount.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

 

2. Charitable Contributions

Another change to note when filing taxes in 2022 is charitable tax deductions. If you do not itemize your withdrawals (subtract them from your gross income), you may take a charitable deduction. However, the amount you are eligible for will depend on your status.

For instance, if you are married and file joint returns with your spouse, you qualify for $600.On the other hand, if you aren't and made cash contributions to a qualified organization, you are eligible for a $300 deduction on the amount you owe the IRS.

 

3. Claiming the Recoverable Rebate Credit

The federal government rolled out the third Economic Impact Payments in 2021 to cushion citizens affected by the COVID-19 pandemic. If you didn't qualify or were eligible and failed to receive the total amount, you can claim it when filing your 2021 taxes.

Still, if you qualified and got the funds, the IRS requires you to include the total amount in your return forms. Taking this precaution will help you prevent processing delays on your refund. It also ensures you provide accurate details on your tax records.

An ideal way to confirm the amount you received and what you can claim is using Letter 6475. Alternatively, log into your IRS online accounts to counter-check this information.

 

4. Child and Dependent Care Credit

The child and dependent care credits are available to citizens who paid for childcare to work or search for a job. You can also qualify if you paid the money to care for an adult-dependent unable to look after themselves.

 

If you fall in any of these categories, claim the child and dependent care credits to lower the taxes you owe. However, if you don't have delinquent taxes, the balance will go into your refund.

 

When unsure about the amount you spent on these expenses, counter-check your bank account statements. You may also get these details on your financial records or payment receipts.

 

5. Stimulus Checks

If you qualify for a stimulus cheque, you probably received your last one throughout 2021, beyond the 2020's tax filing deadline. When submitting your tax forms for 2022, it's vital to remember the IRS doesn't consider this payment as income

Hence, you don't need to include it in your return documents. In case you didn't get the total amount you qualify for, you can claim them as part of the refund.

Contact Advance Tax Relief to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

WHAT TO KNOW ABOUT IRS TRUST FUND PENALTIES

As hard to believe as it may be, we are now in yet another year and here’s to hoping that 2022 will be significantly better than the last previous years, but we digress. What we’re here to talk about today is IRS TFRP help, or trust fund recovery penalty help, as it is better known.

With tax season coming up fast, our thoughts will soon be turning to our books and accounts, as we look to get all of our taxes in order so as to appease the wrath of the tax man.

If you’re a small business owner, you will likely already be aware that employment 941 payroll trust fund taxes can cause monumental headaches. When money is held ‘in trust’ it has to be paid to the Treasury on a weekly, semi-weekly or monthly schedule. This is all well and good, but should a business use these funds for any other purposes, I.E for paying rent or utilities, problems with the IRS could potentially arise.

It doesn’t matter whether this money was “borrowed” in good faith at all, if the money isn’t returned, the IRS can actually slap you with the trust fund recovery penalties portion and hit you with employment 941 payroll business back taxes personally.

 

Get tax help today by calling us at (713)300-3963

Our tax representation firm is in Houston, Texas but serves taxpayers in all 50 states..

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

 

To ensure this doesn’t happen, here’s a detailed look at IRS TFRP help, or if you received Letter 1153 from an IRS RO revenue officer that you could appeal and protect your rights and options

What exactly are TFRP – trust fund taxes?

Before we take a look at TFRP help and at why our professional tax service, professional, EA, or tax attorney, could be so beneficial, we’ll begin by looking at what trust fund taxes are.

When an employer pays their employees, they won’t cut them a paycheck for all of the money that the employee has earned. Now, before you get too alarmed, don’t worry, because there is a reason for that.

The employer is legally responsible for withholding the employee’s portion of their Social Security and Medicare taxes (FICA) and their income taxes from the wages that they are paying their employees.

The employees trust that their employer will send these withheld payments to the IRS, US Treasury, on behalf of each of them – hence the name ‘Trust’ fund taxes.

What are the ramifications if an employer fails to pay trust fund taxes?

As far as IRS TFRP help is concerned, if the IRS fails to receive a 941 federal tax deposit, or if they receive a deposit that is much smaller than the usual deposit made by an employer, the business owner will be contacted by an IRS representative RO revenue officer by Letter 1153  that you could appeal and protect your rights and options.

Thanks to the 2015 launch of the Early Interaction Initiative, the IRS will identify employers who are slipping behind with their tax payments, or who are notorious for missing tax payments or paying late. Here, an IRS representative RO revenue officer will contact the employer, either in person, or via a letter, and actually offer help and guidance, rather than slapping them with a penalty.

 

If however, the business owner is uncooperative, or if they are simply unable to pay the IRS the 941 payroll tax that they believe they are owed, an investigation will then be launched and this is where hiring a tax representation professional, EA or Tax Attorney will be recommended

 

This investigation is known as a 4180 TFRP – Trust Fund Recovery Penalty investigation, and the long and short of it is that it legally permits the IRS to collect any owed unpaid trust fund taxes by any means necessary. This means that funds can come from the business accounts, as well as from assets belonging to the persons responsible for not making the necessary payments to the taxman.

Get tax help today by calling us at (713)300-3963

Our tax representation firm is in Houston, Texas but serves taxpayers in all 50 states..

So, what exactly is the trust fund recovery penalty?

By now, you’re probably aware that, come hell or highwater, the taxman will always get his money, and by not paying, you are simply prolonging the inevitable.

The trust fund recovery penalty imposed by the IRS is basically a penalty which is equal to the balance of any unpaid employment 941 payroll taxes from your business.

The IRS bases this on the amount of any unpaid taxes that may be outstanding and that have been withheld, along with each employee’s portion of any withheld FICA taxes. Now, you may be thinking that that sounds fair as the IRS was legally entitled to these payments, but the penalties don’t stop there. The IRS also slaps you with interest on the TFRP, meaning that the employer responsible for not paying the IRS will pay considerably more in interest payments.

What can you do if you need IRS TFRP help?

If you get on the wrong side of the IRS, it’s important to act fast so as to minimize the financial damage you suffer. The longer the investigation goes on, the more charges you will incur and the more interest you will pay on top of the outstanding balance. Contact us as soon as you receive letter 1153 from an IRS RO revenue officer that you could appeal and protect your rights and options.

The IRS is relentless, and this won’t go away by itself, and they certainly won’t let you off with a warning and without paying. The good news is that, despite being relentless, the IRS are not heartless and they are more than willing to work with you and figure something out. You can appeal if you think the ruling is incorrect, you can come up with an ‘Offer in Compromise’, you can come to an installment agreement, and more besides.

Needless to say, any of the above is going to be tricky to a non-tax professional which is why hiring a professional tax expert, EA or Tax Attorney specializing in IRS TFRP help and other similar specialties is so beneficial and is so highly recommended if you do fall behind or get in trouble one way or another.

Of course, prevention is better than cure so the best way to ensure that you don’t need IRS TFRP – trust fund recovery help is to pay your taxes and to do everything legally and above board.

Contact Advance Tax Relief to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies