1. Resolve Your Tax Problems Today
The first tip to filing back taxes is to resolve any tax issues as soon as possible. If you can, pay off your as early as possible. This should help you avoid unnecessary collection attempts. A long delay will only make things complicated.
2. Seek the Advice of a Licensed Tax Professional
A tax specialist can help you with your tax problems. They can be able to suggest different methods to help resolve your debt. In some cases, they might even be able to help you in settling the debt for less than what you have to repay.
3. Know Your Rights and Check Your Options
Knowing your legal rights and options before taking any action is one of the most important tips when it comes to filing back taxes. Tax professional can teach you how to file back taxes. They can show you solutions and remedies to the problem you might not have known about before.
4. Figure out Exactly How Much You Have to Pay the IRS
When filing back taxes, make sure to study each one. Check and see them if you prepared them as the IRS instructs. You should be able to find out exactly how much you have to pay the IRS. Tax authorities can help you to check your returns. Help you to take advantage of eligible deductions.
5. File Your Taxes Even If You Cannot Pay
File even if you know that you will not be able to pay. While it may not get rid of the burden completely, it should still help to less it.The disadvantage for failing to file is 10 times more if you fail to pay.
6. Request for an Extension
Individual taxpayers can get an extension to file their tax returns. The extension can be as long as six months or even more if the individual is overseas. If you want an extension, then fill IRS Form 4868. If accepted, then this will extend your deadline for filing the form.
7. Set up an Installment Agreement
When it comes to filing back taxes is setting up an installment agreement is a best relief option. Just make sure to stick to the installment arrangement agreed upon. You can also use the IRS online payment application in order to check whether you are eligible for an installment agreement or not. This will help you in checking.
8. File an Offer in Compromise
Try filing for an Offer in Compromise. You have to prove that you cannot afford to pay your taxes.
9. Pay Using Your Credit Card
Paying by credit card just might help you solve your tax problem.
10. Keep All Records
In filing back taxes, make sure to keep a record of all communications and transactions.
11. Open Your Lines of Communication with the IRS
Keep your communication lines open and try to fully explain your situation. They may be able to help you find a resolution to settle your account. Do not ignore the phone calls and letters that the IRS sends.