Forgetting or failing to your tax returns can happen easier and quicker than you think. After you miss one year of filing, you may feel you have dodged a bullet and it will be tempting to carry on with this negligence in order to avoid being caught. However, you are putting yourself and your family at risk for possible garnishments, financial hardship and lack of peace of mind.
3 Steps to File:
Gather important documents. For each year that you failed to file a tax return, make sure you have your W-2 or Form 1099. If you can't find this paperwork, you can request a copy of your income information from your employer. If you plan to claim certain deductions and credits make sure you have receipts on hand or financial statements prepared by your bookkeeper or accountant.
Locate missing paperwork. Tax documents can also be requested from the IRS by filing Form 4506-T, Request for Transcript of Tax Return. The IRS will send transcripts that contain the most important information, not duplicate copies, from your previous W-2's and Forms 1098 and 1099.
Contact Distinct Tax and upload your documents. We will e-file federal returns for the current tax year and the 2 previous years. Anything prior to that will need an additional consultation.
If you owe a large amount of penalties, you may be able to avoid this serious financial burden if you currently meet or satisfied in the past certain criteria. The penalties may be voided if you have now or in the past experienced:
The death of a family member
Extended service in the military
Bad advice from a CPA, EA, or other tax professional
In regards to payments, you can request a 60 to 120 day window to pay your tax bill in full on the IRS website or by calling 800-829-1040 at no additional charge.
You can also work out an installment agreement, if you need more time to make the payment.
Always remember your friends at Distinct Tax and Notary, LLC are here to assist your with your tax needs.