How Do I File Returns for Back Taxes?

Forms can change from year to year, so be sure you’re using the correct one. For example, the IRS significantly revised Form 1040, which is the main form for individual income taxes, in 2018. The new form replaced the old 1040, 1040EZ and 1040A versions, and moved a lot of information off the form and onto additional schedules. Filing your return is the first step to getting back into compliance with the IRS and most states.

In some cases, you may need professional help preparing an offer in compromise or other solution for your unpaid tax liability. Try to avoid tax settlement firms that claim to offer an easy solution to reduce your debt. These companies often charge high fees and make promises that are nearly impossible to keep. The Taxpayer Relief Initiative introduced revised collection procedures to help taxpayers who owe back taxes and were experiencing financial hardship due to the COVID-19 pandemic. The IRS may begin collections, which could include a levy on your bank account or paycheck or a federal tax lien on your property. Missing a tax filing deadline or failing to pay your taxes can have serious consequences. Description of benefits and details at hrblock.com/guarantees.

What happens if you don’t file back taxes?

If you’re concerned about an IRS notification regarding filing back taxes, schedule a 10-minute call with an experienced tax attorney. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get a maximum of $530 in 2022. Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. Our content is intended to be used for general information purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances and consult with your own investment, financial, tax and legal advisers. First, try to pay off as much as you can, lowering the interest you owe to the IRS.

The IRS might waive penalties if you didn’t file tax returns because of extenuating circumstances, such as a natural disaster, illness, or death of an immediate family member. The IRS offers several options to assist taxpayers who cannot pay their tax liability.

Claim a tax refund

Amending a 1040 is basically an update of the original Form 1040 that you filed as part of your yearly return. This form must generally be filed within 3 years of the date when the original returns were first filed or else this avenue of error correction is foreclosed. However, if the taxpayer’s conduct or circumstances suggests something more than a mere mistake or error, criminal tax penalties may be advanced. Taxpayers who intentionally or voluntarily endeavor to evade or defeat taxes can be held criminally liable for their actions. Criminal tax penalties typically carry harsh penalties including a federal prison sentence.

Lacy says it’s a good idea to hire a tax professional if you’re planning to pursue an OIC because it’s « a lengthy process, and it does take diligence. » Place a levy on you.Once the IRS has created your substitute return, it sends you a tax bill. If this goes unpaid, the IRS can place how many years can you file back taxes a levy on your wages or bank account. Basically, the IRS seizes your paycheck or bank account for as long as it takes to pay your bill. Use CalFile to e-file your state tax return directly to the Franchise Tax Board. Get real-time confirmation and the fastest refund possible.

Protect Social Security Benefits

You can learn more about choosing the right prepaid card here. The CTC is worth a maximum of $2,000 per qualifying child. To be eligible for the CTC, you must have earned more than $2,500.

If you owe money to the IRS, make sure to pay as much of it as possible to reduce the total interest you owe. Unpaid taxes accrue monthly interest that can compound quickly and indefinitely. If you find yourself unable to pay your taxes completely, you might need to enlist the help of a tax relief expert. If you owe the IRS money, it typically won’t be long before you find out. The IRS will begin mailing you notices and bills if you fail to pay your taxes in full. You can also contact the IRS directly by phone, letter, or in person, and check your tax status online. Filing your tax return can be the quickest and easiest way out of any back tax issues.

Contact the IRS for Tax Filing Questions

Working with an experienced tax attorneycan provide the guidance and peace of mind you need as you navigate the challenges of coming back into compliance with the U.S. Working with a tax attorney can help you better understand the risk you face and your potential pathways to mitigate the consequences and penalties you face. You can do this all yourself, but Losi says you may want to hire a professional to guide you through it if you’re multiple years behind on taxes or have a complex financial situation. Check out our list of the best tax relief companies to get started. You may be able to file for free with a provider like FreeTaxUSA, though you might have to pay for postage to mail in the printed return. The IRS might file a substitute return for you, and it won’t be as kind as you would be if you were doing it yourself. Its calculations probably won’t include all the deductions, credits and exemptions you technically qualify for.