Get Unclaimed Tax Refunds from the IRS
In these unsettled times when job security is a thing of the past, you need every dollar you can earn. In good times some people treat money as they use water, foolishly sending it down the drain because it is plentiful. The same goes for income tax refunds. Imagine someone calculates a $5,000 plus refund but does nothing to ensure that they receive it in a reasonable time. According to the IRS, taxpayers let slip thousands of unclaimed tax refunds because they fail to update their mailing address with the IRS when they move. The IRS sends the check to the address on file and cancels it when it comes back from the post office. It looks like some taxpayers are unaware of what steps they should take to change their address with the government. When you get your taxes efile, it does not change your address, even though you give the tax preparer the new address.
Here’s an insightful article that shows you a few tips about preparing your income taxes.
Filing Back Taxes - 5-Step Guide and Helpful Hints
If you haven’t filed a tax return in a while, you may be wondering what options you have. It is in your best interest to file those back tax returns as soon as possible. You might be surprised to learn that filing back taxes may be the simplest way to get out of your tax problems. You do however need to protect yourself and have a plan.
Step One
Gather all of your information for each year you failed to file a tax return. Research thoroughly any missing information to be sure the return you file is correct. Do you have your W-2’s, 1099’s, and mortgage interest statements? Many taxpayers with unfiled back tax returns have lost their tax records. You may contact the IRS to request a wage and income transcript. This transcript will give you the wage and income information you’re missing. If you were self employed you may need to work with an accountant to help determine estimates for you.
Step Two
Filing your past due IRS returns. The question needs to be asked whether to file your IRS back taxes yourself or hire a professional. If you decide to do it yourself be sure to use reliable tax software. You should also plan on spending two to three hours on each tax year. On the other hand, hiring a tax professional may not only help you prepare for filing back taxes but also deal with the IRS for you.
Step Three
Protect your refunds. You need to know there are strict time limits for statute of refunds, audits and collections. You should also know that if you owe taxes for other years, the refunds may be taken to offset those other debts.
Step Four
Deal with the tax debt that is owed. You should have a plan for how you will pay off your tax debts. You will also need a plan to protect yourself from IRS assessments, levys, liens and seizures. This will usually require an experienced professional to help you resolve these issues. Your plan could be as simple as setting up a monthly payment plan or writing a check for the full amount. Regardless of your situation, you need a plan, because ignoring the IRS can get you in trouble fast.
Step Five
Plan ahead. If you found yourself owing in past years, you should do some tax planning for the current year. You should adjust the withholding in your paycheck by completing a new W-4. If you make estimated tax payments they should be adjusted to fulfill your tax liability.
Helpful Hints
1. Filing back taxes can not be done electronically. These returns will have to be mailed to the IRS service center. You may also choose to deliver them to a local IRS office.
2. Mail each back tax return in separate envelopes.
3. Mail the back tax returns via certified mail so you receive proof of IRS receipt.
We help our clients achieve the best possible results. Recently, Tax Matters Solutions helped a client with the filing of back taxes. The last return he filed was for the year 2000. Within a week after meeting this client we had prepared his 2001 through 2007 individual income tax returns. Filing back taxes does not have to be a painful and long process. Let Tax Matters Solutions help you when filing back taxes.
Get more help and information at http://www.taxmatterssolutions.com/
You can track your refund by going to the Where’s My Refund web site of the IRS.
Originally posted 2009-02-11 09:47:50. Republished by Old Post Promoter
