If you have found yourself in a situation where you have not filed income taxes for a while, you might have started to receive notifications from the IRS. They want their money, so they need you to file your taxes, even if you're filing old tax returns. Of course, you might be a little worried about the money you may owe and how you are going to handle paying all of it. To help you tackle this situation, you will want to continue reading. Here are a few tips to get you moving in the right direction once you are ready to start filing old tax returns:
Get The Proper Forms
It is imperative for you to remember that you cannot use the current year's income tax forms for previous years. You will need special forms to fill out and you can obtain those from your accountant or by searching the IRS website. You should be able to download the forms online and then print them so you can manually fill them out. Generally, you are not able to file old tax returns electronically. You will need to mail them to the IRS and await their response.
Ask For Hardship Assistance
If you find out that the amount you owe the IRS is more than you can afford to pay—especially if you have several years of taxes to pay—you can request relief through hardship assistance the IRS sometimes grants. You will need to prove that you will experience significant hardships if you are forced to pay what you owe. For example, if you give all of your money to the IRS, you will not be able to pay your past-due property taxes and could therefore lose your home. Another example of hardship would be that you would not be able to repair your broken vehicle, causing you to be unable to get to and from work. If you can prove a hardship, they might reduce or possibly even waive the money you owe.
If you want additional assistance or help filing old tax returns, you can consult with a tax accountant or a tax attorney. Should you discover that what you owe the IRS is going to put you into financial trouble, you could always consult with a bankruptcy attorney. Remember, you cannot file bankruptcy on any money you owe the government, but you can file bankruptcy on other debts that you owe and that can make paying the IRS a little easier.Share