You didn’t mean for it to happen, but due to a shortage of time or money or both, you put off filing your taxes last year. Now, it’s a year later, and you don’t know what to do. The important thing is to be proactive and address your late filing situation instead of ignoring it. Here are a few tips to help you navigate late tax filing:
Don’t Bury Your Head in the Sand
Every month that goes by with un-filed and unpaid taxes adds more penalties, fees, and interest to what you owe the IRS. If you have been ignoring your taxes this whole time, it’s time to have an honest reckoning. Sit down with those unopened letters from the IRS, your old W-2s, paystubs, and other relevant documents, and get a handle on how much you owe. This can be scary but once you have a clear idea of your situation you may find you feel relieved and calm.
Hire a Professional
This isn’t the time to go it alone. A qualified tax accountant will be able to accurately assess your situation and help you come up with a solid plan. They will submit your late filing paperwork for you, eliminating a great deal of the stress from the situation.
Be Honest About What You Can Pay
Even if you are unable to pay all that you owe, it is still crucial to file as soon as possible. The IRS has many payment plan options available and your tax accountant will help get you signed up for one that meets your needs.
Make a Plan for Next Year
It’s important to learn from your mistakes and avoid getting into a similar mess in the future. Begin proactively saving expense receipts and other important documentation for next year’s taxes. If you are worried you won’t be able to pay next year’s tax bill, begin setting aside money each month. Talk with your CPA to determine how much to save.
Don’t let anxiety about your late taxes stop you from taking action. Instead, be proud of yourself for finally tackling the problem. We are here to help, so be sure to contact us today to get started.