You Risk More with Unfiled Returns
If you’ve not filed a tax return because your business didn’t have the funds to cover what your taxes would be, you run an even higher risk of incurring more costs and penalties beyond just what you would have owed. For example, if you don’t file your business tax return, the IRS can file for you. They go off of the information that they have, which generally doesn’t include your exemptions, deductions, and other important factors that reduce your taxes. This means that if you wait long enough to file your return that the IRS has to do it for you, you may be stuck paying even more. Additionally, the IRS will likely tack on fees and penalties, causing your tax burden to quickly get out of hand.
How to File Your Back Tax Returns
If your business has back tax returns, it’s time to get up to speed. Tribute Tax Defense can help.
- Gather the information you need for the return. This may take quite a bit of digging, and you may even need to contact the IRS to get transcripts. Let the IRS know that you are filing your back taxes and ask for an extension. Otherwise, the IRS will continue to pursue action against you for not filing on time, even though you’re currently working on the issue.
- Complete the return and file it with the appropriate division of the IRS. If you have more than a couple back tax returns to file, ask how far back you need to go. Often, the IRS will not require you to file tax returns beyond the past six years.
- Determine what you owe and how you may be able to pay it. If you have enough liquid assets to cover the amount, pay the IRS as soon as possible to cease any collection activity against you. If not, arrange a reasonable payment plan with the IRS. Be sure to continue saving what you will owe this year, even while paying on your back taxes, or you will never break the round-robin cycle. Make sure to always get proof that you filed and keep the information with your documents from that tax year.
Get Help Filing Back Tax Returns Today
Filing current tax returns for a business is hard enough — going back a year, two years, or even more can make things exponentially more complex. Get the help you need gathering documentation and going through the process of filing back tax returns for your business by contacting Tribute Tax Defense. Call now for a consultation at (713) 497-1841