Do you have unfiled taxes and don’t know what to do? This can be a scary moment when you fall behind on taxes, but a CPA can help you get back on track and in the good graces of the IRS. Here are some tips:
• Start by gathering your records. It is necessary to have all the records of when you did not file or as many as you can. This includes 1099S and W2s.
• Secure internal IRS transcripts, as these will be a checking point where you can fill in any information missed. You need to make your best guest on any income not on theses transcripts.
• If you are self-employed, you need to note business income and expenses and back track to determine personal income.
• If you fail to file a return, sometimes the IRS files one for you. In this case, you may not receive any deductions or exemptions. This can be corrected if you file a corrected, original form.
• If you are married but only one spouse has an income, it may be beneficial to file separately so the IRS is limited in who they can collect from.