Contact the IRS
You’ll start getting back on track to continue your tax-filing procedures. Contacting and getting in touch with the IRS to find out what they are working on with your account will be unsettling. Make sure if the IRS has started a negligible refund investigation and who it is assigned to. After you get in touch with the IRS, obtain your Income and Wage records for all the years you are filing. If the IRS has completed assessing tax by the time you obtain the records, request for a delay. You might get granted an additional 21 days to submit your filings.
Know more about: Late or Unfiled IRS Tax Returns
Find out how many years you have to file
The most common mistake made by people who haven’t submitted paperwork in the past is submitting too far from the initial time. How long ago must you have filed to be in excellent standing? The solution can be discovered in a little-known IRS rule. As per an IRS Guideline Statement, people need to provide six years of historical tax returns to maintain a positive status with the IRS. The policy further states that any deviation from usual practice must be authorized by IRS administration.
File appropriate returns with the IRS in the proper location
Old refunds are not paid by the IRS. Only returns filed within three years after the initial due date are eligible for refunds. Prior year refunds go to waste and cannot be used to settle outstanding debt. Making sure your return is correct and corresponds with IRS data is crucial. It is advisable to track your revenue history using past tax returns. The IRS may doubt the authenticity of your client’s return if there isn’t a match.
Obtain bank archives to confirm the amounts your customer paid, particularly if you made approximated tax payments that might be applied to any outstanding balances. The return must also be filed with the appropriate IRS unit. Returns that are not enforced beforehand are sent to the usual filing place.
Pay down any fines and outstanding amounts
There may be significant penalties for returns that are past due. If you are eligible, you should ask for a penalty reduction. You can ask the IRS not to impose relevant failure to submit or pay fines on balance-due filings for the majority of late-filed tax returns. The two main justifications for non-assertion or reduction are, if you possess a clean adherence record from the previous three years or can provide reasonable cause for your late filing and payment, you may be eligible for a first-time exemption for the first year, and depending on your situation, there are several sorts of agreements if you are unable to pay.