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How to catch up on past tax returns

Most tax payers usually fail to file their tax returns making it hard to trace past tax returns. If you are one of those people who fail to file their returns then you are probably racking up penalties and interest on back taxes or on every month that you are late. Sometimes there are people who fail to file their tax returns due to some unavoidable reasons and penalty of such people can be reduced if they persuade the IRS. Some of these reasons are:

  • Death of a member of your family
  • Mental illness
  • Alcoholism
  • Extended military service
  • Bad or poor advice from your advisor or accountant

Below are some of the ways in which you can catch up with your tax returns:

  1. Collect your income information

Your income information is very important if you want to catch up with all tax returns.  Therefore you should gather all your information for the years that you have not been paying and this information will assist in tracing the amount you are supposed to pay. You should gather all information including the information of the capital assets or stock that you sold in those years.

  1. Determine all deductions and exemptions

The determination of the deductions and the exemptions is very important because it will assist you in reducing your tax bill. You should not forfeit the deductions and the exemptions that you had taken and therefore ensure they are also included in your tax file despite it being late.

  1. Ensure you have tax forms that are proper

Obtain the tax forms of all those particular years or months and stick to the rules in them. The past due returns are supposed to be filed using the original tax forms. Ensure that you are not filling the wrong forms such as the forms of the current year while paying for the past dues or the dues of the previous year.

  1. Complete tax forms

The tax forms should be filled in complete and failure to which they are rejected. They should be filled in accordance to the instructions that they have in order to inconveniences. In most countries the laws governing tax keep changing from one year to the other and therefore when filling the forms use the laws of the year when you had dues and not the current year tax laws.

  1. Mailing of your tax return is very necessary

Usually tax forms have addresses that are found in the instructions. If you send your tax refund to the wrong address it means the IRS cannot get it for processing. You can also use the Turbo Tax since it is easy to complete and it gives faster results.

Last but not least it is advisable for you to ensure that you have paid your taxes on time because delayed payments have their own consequences. Also make a copy of all the documents that you are sending to the IRS so that if there is any problem it can be easy to handle or solve it.  For more information about taxes visit taxreturn247.com.au

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