When it comes to managing personal finances, it can be tricky to know how to proceed. While many people start focusing all of their energy on taking care of the things they need at the moment, the truth of the matter is that there are a lot of things you can do to disrupt your finances that may be easy to ignore at first. For starters, it is crucial to move forward and identify tax issues, even if you haven't focused on them quite yet. Check out these short posts to learn more about how you could be faced with tax problems, and how to resolve the situation for the long run.
Unfiled tax returns that are now past-due are a serious matter and must be taken care of, but the consequences aren't insurmountable if you deal with the tax returns promptly. If you have one or more unfiled tax returns, here's how to take care of them.
Step 1: Contact a Tax Services Professional
Before you panic about your unfiled returns and the consequences that they might bring, first get in touch with a tax service professional to discuss your situation. Most situations involving unfiled returns are serious, but they aren't as dire as people sometimes imagine.
While the IRS is able to bring criminal charges in certain situations, this is used only as a last resort when unfiled returns aren't dealt with. Most people who have unfiled returns -- and there are many who end up not filing returns in time -- face late fees and other financial penalties that are much easier to deal with.
A tax services professional can explain exactly what you're facing, and it's likely not an insurmountable obstacle so long as you actively address the matter. By talking with a professional from the get-go, you should be able to avoid panic and focus on what actually has to be done to address the problem.
Additionally, a tax services professional will help you through all of the other steps so that you don't face this on your own.
Step 2: Collect All of the Necessary Documents
With a tax services professional, identify all of the supporting documents that you need to include with your return. Some common documents that you might have to include with the return are:
Schedule Cs are completed by business owners and not issued by someone else. A tax services professional can help with filling the form out.
Step 3: Complete the Tax Returns
When all of the required documents are gathered, complete the actual tax returns that are past-due. Your tax services professional can help with this process.
Step 4: Compose a Letter for the IRS
In addition to the return and supporting documents, your tax services professional can help you write a letter explaining the reason for your late filing. If there is a legitimate reason why you missed the filing deadline, this may help your case.
Step 5: File Everything
With everything compiled, file the supporting documents, returns, and a letter to the IRS. The IRS will determine whether you have a liability to pay or in line for a refund.Share
28 April 2020