Wednesday, March 20, 2024

What Forms Do I Need To File Back Taxes

Don't Miss

Extension Does Not Delay Taxes Owed Or Ira Deadline

How To File Back Tax Returns | TCC

The extension to October 15 applies only to the filing of your tax return. It does not delay any tax you may owe beyond what you already paid the IRS in withholding and/or estimated taxes. To avoid penalties, be sure to pay taxes you expect to owe by the May 17 IRS filing deadline. Note that the extension also does not delay the deadline for making 2020 contributions to IRAs and HSAs beyond May 17.

You May Like: How Much Federal Tax Should I Pay

What Happens If You Don’t File Back Taxes

The IRS might file a substitute return for you, and it won’t be as kind as you would be if you were doing it yourself. Its calculations probably won’t include all the deductions, credits and exemptions you technically qualify for.

You may also have to pay up. If you owe the IRS, the failure-to-file penalty is 5% of your unpaid taxes for each month past the due date, up to 25%. After 60 days, the minimum penalty is $435 or 100% of the tax on the return. You could also face a failure-to-pay penalty and interest.

Beware: The IRS will start the collection process if you ignore a tax debt and may pursue a federal tax lien on your property.

Next Steps: Plan Ahead For Next Year

Filing accurate tax returns by the filing deadline and paying all the tax you owe on time goes a long way to help you avoid problems with the IRS. Dont wait to clear up your back taxes before getting a jump start on this years tax return.

Start a file for all your tax documents, such as income statements from your employer, interest statements from your bank or receipts for deductible expenses you hope to itemize. Having everything in one place will be helpful when its time to prepare your return.

You can use the IRS Tax Withholding Estimator to help ensure youre having the right amount of tax withheld from your paycheck. If you have too little withheld throughout the year, you could face a tax bill when you file next year. And if you withhold more than necessary, you could get a refund next year.

Read Also: Why Is My Taxes Still Processing 2021

Due Date Extension For 2021

Because of the severe weather that Texans experienced in February of 2021, the Texas Comptroller of Public Accounts has extended the due date for 2021 Texas franchise reports and payments to June 15, 2021.

The comptrollers website shares that the extension is automatic for all taxpayers. Hence, there are no additional forms required to get the extended due date. The due date extension applies to all taxpayers. The extension is automatic, and taxpayers do not need to file any additional forms.

Due Dates:

  • If taxpayers cannot file by the extended due date, they must file an extension request by June 15 and pay 90% of the tax due for the current year or 100% of the tax reported in the prior year.
  • Non-electronic funds transfer taxpayers who are granted an extension have until November 15, 2021 to file their report and pay the remaining tax amount due.
  • Electronic funds transfer taxpayers who are granted an extension have until August 16, 2021 to file and pay the remaining tax amount due.
  • EFT taxpayers have the option of requesting a second extension to move their filing deadline to November 15, 2021. They must file that second extension request on or before August 16, 2021. At the same time, they must pay their remaining tax amount due. Their report deadline gets extended to November 15, but the balance of their tax obligation must be paid by August 16.

Use Tax Preparation Software

Filing Back Taxes

An intermediate option between filing your own taxes and hiring a professional is to use tax preparation software for your federal and state returns. You input your own information, but the software is designed to help you through the process step by step.

Professional support may be available online or by phone, or both.

If you use it for more than one year, the best of these programs automatically fill in your previous years information.

Don’t Miss: Can You Claim Child Support On Taxes

Penalties That Otherwise Apply

Without the program, a plan sponsor faces many potential late filing penalties, including:

  • $250 per day, up to $150,000 for each late Form 5500 or 5500-EZ, plus interest ) as amended by section 403 of the Setting Every Community Up for Retirement Enhancement Act of 2019 .
  • $1,000 for each late actuarial report

How To File Back Taxes: 2022 Guide

Owe back taxes? There are different reasons why you may not have filed your tax return on time. Regardless of what caused you to fall behind, its important to get caught up as soon as possible in order to minimize any IRS penalties and fees that may apply. The process for how to file back taxes might seem a little overwhelming but it doesnt have to be stressful. Heres what you need to know.

A financial advisor could help optimize your financial plan to reduce your tax liability.

Also Check: How To Pay City Taxes

Itemized Tax Deductions And Credits

The government offers a number of deductions and credits to help lower the tax burden on individuals, which means more money in your pocket. Youâll need the following documentation to make sure you get all the deductions and credits you deserve.

  • Child care costsproviderâs name, address, tax id, and amount paid
  • Education costsforms 1098-T, education expenses
  • Adoption costsSSN of child, legal, medical, and transportation costs
  • Home mortgage interest and points you paidForms 1098
  • Charitable donationscash amounts and value of donated property, miles driven, and out-of-pocket expenses
  • Casualty and theft lossesamount of damage, insurance reimbursements
  • Other miscellaneous tax deductionsunion dues, unreimbursed employee expenses

Properly documenting the taxes youâve already paid can keep you from overpaying.

  • State and local income taxes paid
  • Personal property taxesvehicle license fee based on value

Recommended Reading: Lovetothe Rescue.org/tax-receipt

How Many Years Can You File Back Taxes

How To File Your Tax Return In 2022 Online For FREE! (Step By Step)

You can file back taxes for as many years as you missed. If you file more than three years after the due date, you might not get a refund. Some tax experts say that paying off the most recent six years tax puts you in good standing with the IRS, but its best to speak with a tax relief professional or the IRS to confirm.

Don’t Miss: Can I File My Taxes On My Phone

File The Final Income Tax Returns Of A Deceased Person

  • Tax Exempt Bonds
  • In general, file and prepare the final individual income tax return of a deceased person the same way you would if the person were alive. Report all income up to the date of death and claim all eligible credits and deductions.

    If the deceased had not filed individual income tax returns for the years prior to the year of their death, you may have to file.

    It’s your responsibility to pay any balance due and to submit a claim if there’s a refund.

    Your Businesss Payroll Data

    Your accountant or tax professional will also need your payroll data from the year. Bring copies of your employees W-2s, W-3s, and 1099-MISCs. Also, gather health insurance records and any information regarding bonuses.

    Payroll software makes this information readily available. Check out our top payroll software recommendations to make gathering this information easier come next tax season.

    Read Also: What Is The Best Tax Preparation Company

    Why And How To File Back Taxes

    The IRS is typically willing to work with taxpayers who make an effort to get caught up on their tax filing obligations. Filing back taxes can help you avoid drastic IRS collection efforts.

    When people fall behind on their tax filing obligations, the IRS may eventually file a tax return on their behalf.

    That might sound convenient, but it’s rarely beneficial. Whenever possible, you’re better off filing back taxes on your own . Below, we’ll explain the benefits of getting caught up on your back taxes and how to file them.

    How To File Your Return

    How To File Your Income Tax Return Online

    For accurate and efficient processing, the Department strongly recommends taxpayers use an electronic eFile option to file their returns.

    For taxpayers filing using paper forms, you should send us…

    • Your North Carolina income tax return .
    • Federal forms W-2 and 1099 showing the amount of North Carolina tax withheld as reported on Form D-400, Line 20.
    • Federal Form 1099-R if you claimed a Bailey retirement deduction on Form D-400 Schedule S, Line 21.
    • Form D-400 Schedule S if you added items to federal adjusted gross income on Form D-400, Line 7, or you deducted items from federal adjusted gross income on Form D-400, Line 9.
    • Form D-400 Schedule A if you deducted N.C. itemized deductions on Form D-400, Line 11.
    • Form D-400 Schedule PN if you entered a taxable percentage on Form D-400, Line 13.
    • Form D-400 Schedule PN-1 if you entered an amount on Form D-400 Schedule PN, Part B, Line 17e or Line 19h.
    • Form D-400TC and, if applicable, Form NC-478 and Form NC-Rehab if you claimed a tax credit on Form D-400, Line 16.
    • A copy of the tax return you filed in another state or country if you claimed a tax credit for tax paid to another state or country on Form D-400TC, Line 7a.
    • A copy of your federal tax return unless your federal return reflects a North Carolina address.
    • Other required North Carolina forms or supporting schedules.

    You May Like: When Are My Taxes Due This Year

    An Offer In Compromise

    An offer in compromise is a bit more complex. It involves reaching an agreement with the IRS to pay less than your full balance due. An offer in compromise is typically only approved if youre unable to pay through an installment plan and comes with an application fee. Youll probably need the help of a professional for this option.

    You must establish that you cannot pay your balance through an installment agreement or by any other means. All your past due tax returns must be filed before the IRS can grant you this relief, and you must have made some payment toward taxes in the current year, either through withholding from your paychecks or by sending in quarterly estimated payments, even though you havent filed a tax return for the year yet.

    What Is A Texas Franchise Tax

    The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. Form 05-359, Request for Certificate of Account Status to Terminate a Taxable Entitys Existence in Texas, if needed to terminate the entity with the Secretary of State.

    Also Check: How To Report Bitcoin Loss On Taxes

    Also Check: When Do Llc File Taxes

    What To Bring To Your Accountant At Tax Time

    Youll need all this information and documentation whether you prepare your tax return yourself or if you decide to use a tax professional. The difference with the professional is that youll have to take all pertinent information with you to your appointment or gather it together in advance to send through fax or electronically. Youll also need some additional documentation if youre using a tax professional for the first time.

    Your tax preparer will require identifying information for you, your spouse , and your qualifying dependents, if applicable. This means Social Security cards, although you can typically take a copy of your most recent years tax return instead. This will detail all your identifying information unless youve since acquired another dependent who wasnt listed on that return.

    Of course, you wont have to bring all of this with you if youre using the same professional youve used before. Theyll already have everything at their fingertips.

    Collect These Documents Before You Start Your Tax Return

    Tax Forms & Deductions : How to File Back Taxes

    The Good Brigade / Getty Images

    The challenge of gathering everything you need to file your annual tax return can be either minimal and yawn-worthy or aggravating and time-consuming. How you feel about doing your taxes can depend on your financial situation. You can probably yawn if youre single, rent your home, and work one job, but youll have to dedicate some time to the filing process if youre married, are a single parent with at least one of your children living at home, have investments, are self-employed, or work multiple jobs.

    Each of the latter scenarios will require gathering multiple documents.

    You May Like: How To Get Previous Years Tax Returns

    How Can I File And Pay My Back Taxes

    Its best to use reliable and easy-to-use software if you’re going to prepare your tax returns yourself. Plan on spending a few hours on each tax return you have to file. There are tax software programs that can help you for free.

    Again, make sure youre using software and forms for the appropriate tax year. Regulations vary from year to year, and the software settings can be critical for compliance as well as your liabilities or refund.

    You might get a better result by hiring an experienced tax professional because they can help you with more complicated tax compliance and know how to deal with the IRS, if necessary.

    Look for someone with significant experience in preparing back taxes if you decide to use the services of a professional. This would be the way to go if you need advice on handling incomplete tax documentation, or an advocate who will negotiate with the IRS on your behalf.

    Youll need to print out the back tax returns and mail them in to the IRS to officially file them. You cant do it online.

    How Do I Apply For An Itin

    If you want to file a tax return but cannot obtain a valid SSN, you must complete IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. Form W-7 must be submitted to the IRS with a completed tax return and documents verifying identity and foreign status. You will need original documents or certified copies from the issuing agencies. The instructions for Form W-7 describe which documents are acceptable.

    Parents or guardians may complete and sign a Form W-7 for a dependent under age 18 if the dependent is unable to do so, and must check the parent or guardians box in the signature area of the application. Dependents age 18 and older and spouses must complete and sign their own Forms W-7.

    You can use this checklist to help prepare your application.

    There are three ways you can complete the ITIN application:

  • Taxpayer Assistance Centers: Certain IRS Taxpayer Assistance Centers have staff who can help you prepare W-7 forms, determine which documents are acceptable, and verify the validity of identification documents. You must schedule an appointment.
  • Acceptance Agents: An Acceptance Agent authorized by the IRS can examine identification documents, certify that they are valid, and send the application to the IRS. For dependents applying for an ITIN, Agents send the original documents to the IRS. Some Acceptance Agents also offer free tax preparation to help you file a tax return.
  • Don’t Miss: Can I File Taxes If I Have No Income

    Tax Credits For Seniors

    If you are a taxpayer over age 65 or permanently disabled, you are eligible for a tax credit of up to $5,000. The complete rules for qualifying for the credit can be found on the IRS website, including a flowchart for determining your eligibility. Tax credits reduce your tax burden dollar-for-dollar.

    Seniors are eligible for a higher standard deduction on their return. If you are not itemizing, you can take an extra standard deduction of $1,750 for single filers or $1,400 for married filing joint filers.

    What To Do If You Can’t Afford To Pay Back Taxes

    What Is Form 1040 ES When Are Estimated Tax Payments Due

    Because of the potential for interest, the IRS advises you to pay your tax bill in full as soon as possible.

    If you owe less than $100,000 and can’t pay right away but will be able to soon, you may want to pursue a short-term payment plan. Short-term payment plans can buy you an extra 180 days and don’t cost anything to set up online. You can apply using the Online Payment Agreement tool at IRS.gov or call 800-829-1040.

    If you’re unable to pay that quickly, there are other options.

    Request an installment agreement

    If you can’t afford to cover your unpaid taxes, you can request an installment agreement by filling out Form 9465 . Fees start at $31 but vary based on your income level, how much you owe, how you pay and how you set up the long-term payment plan.

    Request an offer in compromise

    If paying your bill would be a serious financial hardship, you might consider an offer in compromise, which is essentially a settlement with the IRS for less than your total bill. The IRS warns that this program is “not for everyone” given its restrictions and rigor. Fees depend on your income but start at $205 .

    You can apply for an offer in compromise, or OIC, by completing Form 656. Lacy says it’s a good idea to hire a tax professional if you’re planning to pursue an OIC because it’s “a lengthy process, and it does take diligence.”

    Read Also: How To Get Tax Exempt Status

    Documents That Support Tax Deductions

    Identifying the documents youll need to claim certain tax deductions can be an arduous process. Ideally, youve been collecting them all year long as you paid certain expenses.

    Its not necessary to provide your receipts to the IRS unless youre audited, but youll need them to ascertain how much you can claim for various deductions, and youll want to keep them on hand just in case. While you can take the easy way out and simply claim the standard deduction for your filing status, youll have to know how much you spent on qualifying expenses if you decide to itemize instead. Common itemized deductions include charitable giving, state and local property and income taxes, medical expenses, and health insurance.

    More articles

    Popular Articles