- Grantor Trust Taxation
If you’ve missed the tax deadline and are avoiding filing your late taxes you could be accumulating penalties and interest as we speak. While it may be overwhelming and stressful to face a late tax situation, it is much better to take action as soon as possible in order gain the best case scenario. However, while it is important to act fast, it is equally important to take time and care with every action. Follow our three steps and get started on filing your late taxes.
- Gather all information, forms, and documents that will help your case. This means fully understanding your scenario and your ability to take care of it. You must diligently gather W-2’s, income statements, mortgage documents, expenses, and IRS forms you consider necessary. It is important to be fully prepared, so even if you are questioning the relevancy of a form, hold on to it.
- Calculate amount owed. Depending on your situation, the amount you owe can vary. If you’ve simply missed one filing, the process could be quite simple as compared to several missed filings. Be aware of what you are getting yourself into before you consult anyone else. After calculating what you woe, calculate your ability to pay it back, and how much time you need.
- File, file, file! Of course, consulting a tax professional for filing is important and will make the process much easier for you. After finding a tax professional, work with him or her to begin filing your returns. Pay close attention to the process and follow through with all steps. Mail in your returns, separating them by year. Be sure to get a receipt when mailing.
After you’ve mailed in your returns, pat yourself on the back! You’ve completed the process. However, it is important to always follow up and make sure everything has gone through ok. After following up with the IRS, focus on paying back your taxes at your set rate. Be sure to stay on top of the process in order to achieve the greatest results and no further penalties. Stay on top of communication with the IRS and hopefully you will see yourself out of debt before you know it.