Running afoul of the Internal Revenue Service is the last thing that anybody would want to do. However, mistakes happen, and sometimes the circumstances are such that you cannot avoid being on the wrong side. If you have been in a similar situation where you have not been able to pay your taxes and are now worried about the IRS penalizing you for the same, then here are four steps that can help you dig your way out of this problem.
Step 1: Collect required tax documents.
Get the copies of your W-2s, 1099s and all other relevant tax documents for the year you were not able to file your taxes. In case you do not have the required documents, ask the IRS for free copies of those documents. You can also contact your employer or the financial institution (the one who sent you the documents) for the same.
Step 2: Hire a tax professional.
Tax matters are complicated and most people cannot handle them on their own. In cases like these where one has to handle incomplete tax documentation or negotiate with the IRS, seeking help of a tax professional becomes all the more important. An experienced tax attorney can guide you on how to go about filing your old tax returns, but on an even better note, they can also do it on your behalf.
Step 3: Work out a payment plan.
Once you have filed the taxes take help of an IRS tax attorney to come up with an easy to repay payment plan. The IRS allows taxpayers who owe less than $50,000 to repay their back taxes in the form of monthly installments, over a period of 72 months. In case a taxpayer owes more than $50,000 to the IRS, and cannot repay the amount in 72 months should contact the IRS directly and work with them to come up with a feasible payment plan.
Step 4: Claim your tax refunds.
Do you know that even later filers can claim their pending tax refunds? The IRS allows taxpayers to claim their pending tax refunds, however, there are strict time limits for doing so. Typically, a taxpayer can claim their tax refunds up to three years from the start of the due date for claiming the return. If, however, you have any balance due from any other year then your refund might be adjusted against the same.
Need help to file your unfiled tax returns?
If you have been waiting to file unfiled tax returns, it is advisable to hire a professional tax attorney without any further delay. Consider hiring the Law Offices of Nemeth & Flores who have dealt with these types of cases for the past 16 years. We have helped our clients solve some of the most complicated cases due to unfiled taxes. To schedule a free and confidential consultation, call us at (972) 426-2553 or fill out our ‘Contact Us’ form and one of our experts will get back to you as soon as possible.
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