how to file back taxes

Knowing how to file your back taxes can help taxpayers get out of debt and allow them to reestablish good credit. It will give taxpayers a better understanding of how much they owe and what they can do to reduce the debt load.

Step 1 - Gather All Your Tax Documents

Before filing back taxes, gather all your tax-related paperwork. This can include:

a copy of the last tax return you filed. Be sure to include all the forms;
tax documents from your place of employment or source of income such as a W2 or a 1099
if you are missing any copies, you can request them from the IRS for free

Step 2 - Prepare the Tax Returns

Using the documents you gathered, prepare this year's tax return, as well as any tax returns you are missing. For best results, you can:

utilize tax-preparation software such as TurboTax;
hire a tax professional. A tax professional is particularly useful when dealing with incomplete tax documentation or if you are looking to negotiate with the IRS.

Step 3 - Check the Tax Refunds

See which tax refunds apply to your tax return. You can estimate how much money you will get back and plan your repayments accordingly. Pay attention to time limits for getting refunds.

Step 4 - Repay Your Debts

Make a detailed repayment plan to take care of whatever you owe IRS. An experienced tax professional can help you with negotiations. There are a number of ways to repay the back taxes:

repay in full
negotiate a monthly payment plan
reduce dept through the Offer of Compromise

Whichever plan you choose, be sure to follow through. Otherwise, the interest rates and penalties will accumulate and IRS will impose harsher measures to regain it's debt.

how to file back taxes

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