Have a Tax Question? Ask a Tax Expert
Do you owe back taxes? Or, need to know how to file them? For whatever reason, one may find themselves in a position of owing back taxes. Whether it is a result in an oversight or neglect on one’s part for just not filing their taxes, the IRS has made it possible for one to file them. They may or may not apply penalties associated with a tax liability or refund. Read below where Experts have answered back tax questions.
These are taxes that may not have been paid when due. They are typically taxes that were not filed for a prior year’s income that may either result in a refund or tax owed. One may consider involving an Expert for help in recovering all necessary documents needed for filing.
One would need to obtain all pertinent documents for each open year. These may include but not limited to W-2's, 1099's, mortgage interest expense and real estate taxes documents, medical care documents, and unreimbursed work expenses, gambling income or loss may be applied. Marital status, dependent children will all factor in and one would need to obtain their date of birth, full legal name, and Social Security numbers as well. When filing back taxes one should file all open years and file them all at one time. You would want to make this as simple as possible. It may be best to hire a Tax Lawyer or Certified Public Accountant (CPA). A Tax Lawyer or CPA may have access to information such as tax forms or tax software for past years which could allow for less frustration in obtaining these items.
When unable to collect 1099’s from a previous year, one may consider contacting the IRS when filing their back tax return. "Wage and Income Transcripts” may be requested by calling the IRS.
In most cases, an individual will still responsible for the back taxes owed to the IRS. The IRS is subject to error and in correcting this error may have applied the interest owed against the back tax liability. One may consider sending a copy of the request for payment along with the tax owed, including interest to the IRS. The IRS does not usually waive interest owed for back taxes. One may include a letter of explanation to your situation and reason for omitting the penalties, due to their error in posting the original payment.
Each state may handle this differently. When living in a community property state, filing status may not have any bearing or release you from sharing in the tax liability owed on a spouses back tax returns. When filing a joint return all or part of your refund may be applied to your spouses’ past-due federal tax, state income tax, child or spousal support, including any federal nontax debt, such as a student loan. This may entitle one to an “Injured Spouse Relief”. There are several factors the IRS might need to know before claiming injured spouse relief. Some states allow for an “Innocent Spouse Relief”. An Expert may help to explain who may qualify for these exemptions and how to request this back tax relief.
At some point a person may need to uphold their tax obligation and clear up any back taxes owed to the IRS. The IRS can be sympathetic and may take a lenient position when one owns up to the obligation in filing their returns. In doing so, consider the help of an Expert to understand individual State laws and relief that may be available. Legal tax Experts are available online at your convenience to help.