How To Easily File Back Taxes

Wesley Snipes is a prime example of why now is the time to file back taxes.  After ignoring Uncle Sam for several years, he ended up getting sentenced to prison.  The same could happen to you, especially if you are in the upper-income bracket.  Do not put yourself in such a position.  If you go through tax debt resolution right now, you will clear your conscious while avoiding potential legal problems.

To get started, you will need to gather the following documents:

1. A copy of your latest tax return
2. Copies of your W-2s or 1099s for the years you need to file
3. Any other receipts or financial documents acquired during those years

Do not be alarmed if you have trouble finding these documents, as there are ways you can still get them.  More details can be found in the next section.

How to Get a Copy of Your Documents:

1. The W-2 – As long as your former employer is still in business, and your W-2 is less than four years old, getting what you need should not be too difficult.  Just make an inquiry with your employer’s Human Resources Department.  They should be able to mail you the W-2s in a few days.
2. Form 1099 – Form 1099 is used to declare independent contractor status.  It is usually sent when a person makes over $600 during a tax year.  And, like W-2s, most companies will keep a record of them for a very long time.  If the company you did business with does not have it, try contacting your bank.  Often, banks will let you download tax forms right from your online banking account.
3. IRS Forms - To get information from the IRS, you need to complete a Form 4506-T.  This will help you access information that is up to four years old.  The only downside is that the IRS only holds data regarding your federal taxes.  Additional research may be required to find information for other types of taxes.

Now that you have your information, you need to work on filing your taxes.  The easiest method would involve hiring a tax professional, since they have special training for handling these situations.  Alternatively, you can file on your own using tax software or the IRS website.

Once your taxes have been processed, you may suffer penalties for filing so late.  One such penalty involves a higher interest rate for timed payments.  Another penalty involves your refund.  Late filing sometimes forfeits what you will get back, even if it is a large amount.

However, do not avoid filing because you are afraid of these penalties.  Remember, there are even harsher penalties if you completely fail to file back taxes.  They include a fine of $25,000 or jail time.  If you receive the latter, you will be in prison for each year you forgot to file.