If you have unfiled taxes from previous years, you should act to handle that issue as soon as possible. Unfiled taxes can not only affect your future tax refunds, but they may also incite the Internal Revenue Service to begin collection efforts. That is why it is important to understand how to file your back taxes and the consequences of failing to file on time. If you need assistance handling your unfiled taxes, you should consult with an experienced Sacramento unfiled taxes attorney today.
The NewPoint Law Group knows the undesirable tax penalties associated with unfiled tax returns, and we can help you avoid those penalties. Our firm has represented residents of Roseville, Sacramento, Folsom, Huntington Beach, and across California and we would be proud to represent you. To schedule a confidential consultation, call the NewPoint Law Group at 1-800 358-0305, or contact us online.
How to File Your Back Taxes
Before you can file your back taxes, you need to gather your tax information from the years that you did not file. If you are having problems locating your W-2s, 1099s, and other relevant forms, you can contact the IRS to ask for free copies of these documents. You could also request these forms from your employer. However, they may not have the documents. If they do have your tax forms, they may charge you a fee to issue you a copy.
If you have taxable transactions that the IRS may not have on file, you should gather information about that too. For example, if you were self-employed when you failed to file taxes for a certain year, you will need information about your income that the IRS may not have.
It is important to note that you must file your back taxes using the appropriate laws and instructions from the relevant tax year. For example, if you have an unfiled return from 2016, you must use the tax regulations that existed in that year. This can be complicated as tax laws constantly shift from year to year. However, our firm will ensure you are using the correct laws for every unfiled return.
If you have multiple unfiled tax returns, you may have to file a tax return for the current year and the previous six years. Once you are sure that your unfiled return is completely accurate, you can file it with the IRS. Late tax returns cannot be completed electronically so you will have to mail your return to the IRS manually.
To learn more about filing a late tax return, you should continue reading and speak with an experienced California tax return attorney.
Penalties for Late Tax Returns
The IRS has several options at its disposal to address a taxpayer that did not file their tax returns. One course of action the IRS may pursue is to file a tax return for you. This is known as a substitute return, and you should avoid this scenario. If the IRS files a substitute return for you, they may not utilize tax credits, deductions, and other tax exemptions that you earned.
Before the IRS files a substitute return, they will issue a “Notice of Deficiency.” A notice of deficiency is a 90-day notice to file your old tax returns or to petition the Tax Court to prevent the filing of a substitute return. You cannot request additional time to file late returns after you receive this notice.
If you do not petition the court or file your return within 90 days, the IRS will file the substitute return. However, you may be able to correct the substitute return after it has been filed.
If you failed to file a return, you would likely accrue interest charges and other penalties for a certain period of time. Once you file your return, you will have to pay off this tax bill. If you cannot afford to pay the entire amount, you should contact the IRS to make a payment arrangement.
If you make no effort to pay your tax bill, the IRS will institute the collections process. The collection process may start with a levy on your wages or other available funds. If you owe a large amount in taxes, the IRS may pursue a federal tax lien on your property. A federal tax lien means that the IRS will have a claim on your property, and they could levy that property if you do not pay your tax bill.
Work with a Roseville Back Tax Return Lawyer Today
If you are unsure of how to file your back taxes, you should contact an experienced Roseville unfiled back taxes lawyer. At the NewPoint Law Group, our legal team has decades of combined legal experience that we will utilize to help you streamline the process of filing your back taxes. Our firm is dedicated to providing you with the unique legal representation you need to handle your legal issues. To schedule a confidential consultation, contact the NewPoint Law Group at 1-800 358-0305.