How To File Back Taxes

How To File Back Taxes

All people with income need to file taxes yearly. If you have missed one or more years in the past ten, now is the time to file back taxes. The Internal Revenue Service (IRS) can impose steadily increasing fines and penalties the longer you wait.

Why File Back Taxes
There are convincing reasons to catch up on back taxes:
• Reduce penalties; there are separate penalties for not filing, and for not paying; by filing you avoid one penalty even if you cannot afford to pay immediately
• Ease your conscience by meeting legal requirements
• Start the clock on the IRS statute of limitations which is three years to audit and ten years to collect
• If the IRS has sent an inaccurate estimate, filing can correct it
• You may be due a refund for any of the previous three years; unless you file, you will not know

Steps for Filing Back Tax Forms
Follow these steps to file back taxes:
• Gather all W-2s or 1099 forms, receipts and other documents to support deductions and credits for each year
• If you are missing W-2s, 1099s or 1098s to support deductions, ask for copies from the IRS, using Form 4506-T
• Download appropriate tax forms for each year, or use tax preparation software
• Prepare the tax return for each year, using that year’s information and guidelines
• Submit the forms, along with as much of a payment as possible to reduce interest charges
• After filing, talk to the IRS to try to reduce penalties and fees

If you need help to file back taxes, consult a tax attorney. He can help gather and complete necessary documents to send to the IRS. This professional can also negotiate a payment plan or settle other issues.

Turn to a Phoenix Tax Lawyer for Advice

Taxes
Taxes (Photo credit: Tax Credits)

Filing taxes can feel like a daunting process at times. Tax laws at the federal, local, state, and foreign levels change constantly, causing potential confusion for taxpayers filling out a return. Turn to a Phoenix tax lawyer for advice; they possess the knowledge and combined expertise of tax, business and litigation to counsel and guide individuals effectively. Their understanding of how the different tax laws interplay helps clients to minimize their tax liabilities.

Tax issues can impact many areas of a person’s life, from estate planning to formation of a new business, and bankruptcy, to name just a few. Attorneys can assist with protection of assets through by setting up an entity to protect from malpractice, divorce, or any other threats to a client’s assets. In essence, proper planning avoids stress and anxiety in the event of unpleasant circumstances threatening the client’s tax situation.

A Phoenix tax lawyer can also assist with waiving IRS penalties and working out a payment plan for individuals owing money. In some situations the debt can be settled for less than the amount originally owed. Individuals behind on their filings can catch up quickly with an attorney’s assistance, thus avoiding further accrual of interest and penalties.

Individuals in need of tax assistance should seek a Phoenix tax lawyer today. Any issues or questions related to repayment of debt, filing, can be addressed knowledgeably by an attorney. They can help the client plan for the future and unpleasant events such as divorce, death, or malpractice.

Tax Carnival Ecstasy – February 16, 2012

taxes
taxes (Photo credit: 401K)

Welcome to the February 16, 2012 edition of Tax Carnival Ecstasy. In this edition we have an article by Bill Smith on Discharging Your Tax Debts In Bankruptcy Court. Pat Huddleston wants you to protext yourself from fraud in Accountants; A Love Story. And finally we have 8 Tips to Prepare for Retirement including a tax perspective. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

filing

Frank Goley presents Bond Analysis posted at Easy Forex News.

tax law

Bill Smith presents Can You Discharge Your Tax Debts In Bankruptcy Court posted at 2008 Taxes, saying, “There are many debts that you can discharge through bankruptcy. Is tax debt eligible for discharge through bankruptcy?”

taxes

Jessica Bird presents How CO2 Affects The Cost Of Your Car Tax posted at CarTaxBands.org, saying, “The amount of pollution that your car emits can have an affect on how much tax you pay. This article shows you how to find out what the CO2 emissions are on a car.”

Ranjita patra presents Top 4 Supply Management Trends Impacting Finance | Business Finance posted at Businesss Finance.

Bill Smith presents 8 Tips to Prepare for Retirement posted at 2008 Taxes, saying, “Whether you’re just starting to plan for retirement, or you’re retiring in the next year or two, there’s never a bad time to learn how to prepare yourself for the wonderful world of retirement.”

tips

Amy Gardner presents Average Interest Rates for Payday Loans posted at Payday Loans Online Resource.

Pat Huddleston presents Accountants; A Love Story | Investor’s Watchblog posted at Investor’s Watchblog, saying, “Tips on how to protect yourself from fraud”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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5 Tips for Preparing to File Your Tax Return

So, tax season is here. Yipee! No, really, tax season is here – bring on the headaches. It’s probably safe to say that no one actually enjoys filing taxes. Even if you are expecting a considerable refund, it can be a real chore gathering all of the necessary paperwork and wracking your brain to document any and every deductible item you can think of. Fortunately, there are ways to make the process go a little more smoothly, and to ensure you get the most favorable results possible. Here are five tips for preparing to file your 2011 tax returns:

Scheduling time. Filing your tax returns is not a task to take lightly. It requires your undivided attention. Don’t attempt to prepare your taxes over dinner, while watching television, or in the office break room. Instead, pencil in a specific time to work on your taxes at home, when you know the house will be quiet and you can get your mind in full-on tax mode. That’s the only way to avoid unnecessary mistakes that could end up costing you a lot of money.

Recordkeeping. The best time to begin preparing to file your 2011 tax returns is in January of 2011. Ok, it’s obviously too late for that, but keep this in mind for 2012.  Make it a point to get into good recordkeeping habits, so that you have complete, accurate, and thorough records when it comes time to actually sit down and file your returns.

Organization. Create a filing system specifically for your tax return records. What should go in your filing system? Receipts for all of your write-offs, paperwork from income sources (W-2s or 1099s), investment account statements, social security statements, interest-earned bank statements, college financial aid statements, and/or anything else that you may need a record of when it comes time to shell out the backup.

Learn the codes. You don’t have to have a thorough knowledge of every tax code out there, but make it a point to bone-up on the latest tax codes that may affect your tax return status. If you are not all that tax-savvy, there are some simple, easy to understand tax code narratives on websites designed for people just like you.

Choose filing method. How complicated are your taxes? Are you comfortable doing them yourself? If so, there are some really great programs that you can use to do your own tax work. However, if you find that you aren’t sure about your tax preparation acumen, it’s best to hire a professional. Decide now how you want to handle this issue so you can start shopping around for the best software, tax preparation office, or accountant for you.

You don’t have to like filing your taxes, but you still have to file them. Ease some of your tax season frustrations by thinking ahead and following these simple tips.

About the Author: Carrol Petruska, NAC, NHA, CHA currently works in business administration and helps phlebotomy schools prepare for tax filing season. She started her career as a phlebotomist and then moved into the administrative side of the healthcare field. Visit http://www.associationphlebotomytraining.com/ for more information about phlebotomy associations and schools.

Your Tax Return

Your tax return 2011 will need to be filed before April 15, 2012, for those not keeping track.  It’s important to be aware of the deductions you’re planning to take right now.  Keep track of your expenses and have them readily available for your tax professional to refer to when needed.

Preparing for your 2011 tax filing can be relatively pain free if you set up a system which organizes tax deductions, exemptions and tax credits. Start by having a clear understanding of your earnings.  Next keep a record of all your deductions.  Keep them organized by category.

Medical costs should be labeled and separated from other expenses.  Most people rarely accumulate 7.5% of their income in medical expenses, but many people do, so keep track of premiums for health insurance, taxi rides to doctor’s offices, co-pays costs, deductibles paid and medicines purchased.

Also keep track of taxes paid to the state and local jurisdictions, real estate taxes and interest paid for real estate. Keep a good record of church tithing and other gift giving. Watch your record keeping, don’t repeat things and don’t leave things out.  Allow your tax professional to throw out what cannot be used.

Preparing your 2011 tax does not have to be an ordeal, if you plan and prepare for their preparation.  Organize your records and keep the information up to date and properly labeled so both you and your tax preparer can identify them.  Be honest with your taxes because you don’t want to be audited and you want to keep a clean record with the IRS.  Always plan ahead and keep track of all your rightful deductions.