Unfiled tax returns are enough to make anyone nervous but if you have any, it is much better to deal with the issue now rather than waiting for the IRS to take action, which of course, they will. Knowing how to tackle and resolve the issue can provide you enough confidence and assurance to return to IRS compliance, whether you have a single return or many unfiled tax returns.
Taking unfiled tax returns help from a professional tax consultant would be a better idea as they are knowledgeable about both federal and state tax laws. However, it will be beneficial for you to know the process as well.
Collect your documents
You’ll need your income proof, wages, investments, IRA contributions, charitable contributions, estimated tax payments, and company costs for the current tax year as well as any prior six-year period in which you failed to file. You should typically maintain business tax returns and other tax-related papers for no less than six years.
Looking for a tax professional
Get in touch with a local tax consultant as they have the knowledge of the tax laws and can negotiate a proper resolution for your outstanding like:
- Penalty reduction.
- Offering compromise.
- Payment schedule.
- Status of financial difficulties.
Filing your pending tax returns and monitoring processing
Make sure to get a confirmation receipt after filing your tax returns. Check on your return six weeks later to see if it has been processed and how much you owe. The sooner you negotiate a settlement and begin paying down the outstanding debt, the sooner you will be relieved and carry on with your life.
Ensure you never miss another tax return as filing accurate returns on time will save you all the hassle in the future. Set up reminders, and keep accurate and updated records for completing a perfect tax return every year.