Often, people wait until the last minute to file taxes. In some cases, they might not file taxes for a year or two. However, the Internal Revenue Service wants its money and charges two penalties for unfiled taxes: one for not filing on time and the other for not paying on time. Instead of getting caught up with extra penalties and the possibility of getting your accounts frozen, you can retain the services of the business tax attorneys at France Law to help you get your taxes back on track.
Getting Your Taxes Back on Track
Before you contact a business tax attorney, you should locate as many documents as possible for the years you did not file taxes. You will also need a copy of your taxes for the last year you filed.
Depending on your situation, you might need information from the previous year’s tax return. Place the information for the last year you filed in one file folder and label it for that year.
Locate all documents you need for the next year’s tax return, including W2s, 1099s and other proof of income. You will also need any receipts for deductions you want to claim. Separate the documents into file folders marked “Income – 20xx” and “Expenses – 20xx.” You should have an income and expense file for each year.
You can further organize your documents by using file dividers for various types of income and expenses, especially if you have home office expenses or farming expenses.
Locating Documents
If you cannot find the documents you need, you can visit the entity’s website. Most places, including banks and some employers, keep your documents in your account. You might have to call the company to ask them to forward a copy of the missing documents.
If you cannot obtain documents you know that you need, make a list of those that you cannot obtain. If you remember the approximate amount, write that next to the document name. For example, if you worked for Client A for a week but cannot find proof, check your bank account for a check with the amount Client A paid you and record the amount. You might also print a copy of the check or highlight it on your bank statement.
Additional Documents
You will also need to provide your bank account statements for all of your bank accounts. Your business attorney can determine some transactions by looking at your bank statements. If you have retirement account statements, stock account statements, and other statements where you might have taken a profit or a loss, be sure to include those statements as well.
Beginning Your Tax Returns
While it’s best to have an experienced tax attorney help you with your taxes, you can do them yourself. If you choose to do them yourself, start with the first year you have unfiled taxes to report. You can fill the tax paperwork out by hand, or you can use a commercial program. However, unfiled taxes do have penalties associated with them, and the law changes every year, so it is recommended that you use an experienced business tax attorney. This is especially true if you run a business, even if it is a small one that you run out of your home.
Work through the first year of unfiled taxes. Once you complete the taxes, double-check your figures or retain a Florida business tax attorney to review your taxes for you. Once you are satisfied that the taxes are correct, including the addition of any penalties, you can start working on the next year’s taxes.
Once you start the next year’s taxes, file the first year’s taxes. Do not wait, as interest and penalties continue growing every day that you are late. As soon as you finish the second year’s taxes, verify it or forward it to your business tax attorney for review, then file the tax return.
Be sure you include the payment, if any, with each year’s tax return. Do not file the tax returns in one envelope and with one check for all of the years you need to pay. Write a separate check for each year – you’ll have less chance of confusing the Internal Revenue Service.
Contact France Law Firm
France Law Firm is here to help you through filing this year’s or any other missed tax year forms. If you require help completing your past-due tax returns, contact our expert business tax attorneys at France Law Firm for a consultation today. We will help alleviate any stress and guide you through this process quickly.