U.S. Accountant for Past Year Tax Return Filing

If you have unfiled income tax returns from previous years, you should not delay any longer to file them. There are multiple benefits to filing back taxes, like possibly being eligible for a refund. There may also be consequences for failing to file your returns entirely, like being placed on the Internal Revenue Service’s radar. If you or a family member have to file back taxes, you should consult with an experienced U.S. back taxes accountant.

At US Tax Help, we are ready to guide you through complex U.S. tax laws that are constantly being altered. CPA Ted Kleinman, the founder of US Tax Help, possesses over 30 years of accounting experience handling U.S. and international tax issues for clients around the globe. Ted Kleinman will evaluate your tax situation and help you develop a tax strategy to avoid tax penalties and to maximize your refund if you are eligible to receive one. To schedule a confidential consultation, contact US Tax Help online, or call us at (541) 923-0903.

Reasons to File Your Back Taxes

The amount of income you earn during the tax year will determine whether you must pay taxes for that year. If you were supposed to file a tax return for a certain year but did not, the Internal Revenue Service (IRS) will make a note of this fact. The IRS may use this information to hold a refund from another year or to impose tax penalties under certain circumstances. These are just two scenarios that can arise from failing to handle your back taxes. The following is a list of reasons to file your back taxes.

Claim Your Refund

According to the IRS, if you want to claim your tax refund, you must file a past due return within three years of the date that your return was due. If you do not file your tax return within this timeframe, you risk losing the right to claim your return. However, if you have one or more past due returns, the money from one return can be withheld until you file the other returns or state a valid reason that you did not file your return. Your return can also be applied to another tax debt

Earn Credits Towards Social Security

If you are employed at a company, you will likely have Social Security and Medicare taxes deducted from your earnings automatically. Individuals who are self-employed or work as contractors must handle these transactions personally. This means that if you fail to file your tax returns or you fail to pay the quarterly self-employment taxes, the Social Security Administration (SSA) will not be aware of your income. If the SSA does not have knowledge of your income, they cannot distribute credits towards your retirement or disability benefits.

Maintain Good Financial Status

There are several scenarios where you may have to provide a financial institution with evidence of your tax returns. If you have unexplained gaps in your tax return filing, this can affect your chances to receive a loan to finance a home or possibly your education.

Outside of the circumstances mentioned earlier, you should file your back taxes to avoid paying interest or an unexpected tax penalty. To learn more about filing U.S. back taxes, you should speak with an experienced U.S. accountant.

Substitute Tax Returns

If you fail to handle your back taxes, the IRS may file a substitute tax return on your behalf. When filing a substitute return, the IRS will not seek to maximize your refund. This means if you were entitled to certain deductions and exemptions you will not be able to claim them.

Before filing a substitute return, the IRS will send you a “Notice of Deficiency” that will inform you that you have 90 days to file your past due return or to submit a petition to the Tax Court. Once you receive this notice, you can no longer request an extension to file your back taxes. However, under some circumstances, you may able to file a return to claim any exemptions or deductions that the IRS did not provide you. These changes can be made to a substitute return even after the IRS has filed it.

U.S Certified Public Accountant for Back Taxes

If you need assistance managing your past due tax returns, you should contact an experienced U.S. certified public accountant. US Tax Help understands that staying on top of your tax obligations is difficult and mistakes can happen, that is why we are here to help alleviate the process. Let us worry about your handling your taxes while you focus on other equally important tasks, like running your business. To schedule a confidential consultation to discuss your unfiled tax returns, contact US Tax Help online, or call (541) 923-0903.