If you haven’t filed your tax returns in a while, there are a few ways you can go about becoming compliant. Here are three steps to take to ensure you are caught up with your tax filings.
Get an understanding of what returns are required.
First, consider contacting the Internal Revenue Service (IRS) to determine which returns are required for filing. You can do so two ways – by phone at 1-800-829-1040 or online at irs.gov. Request for a transcript of your account to determine which returns may be due. It is also a good idea to understand whether you are required to file in a specific year. Keep in mind, for personal tax returns, if you made under a certain threshold, you may not be required to file.
Request for your records
Next, the IRS can provide you with a transcript of your earnings for a particular year. This transcript is often referred to as a wage and income transcript. This form lists your wages, interest, and dividends, miscellaneous income. Also, these forms provide a listing of expenditures paid for the year to include mortgage interest expense and more.
Recreate your records if needed
If you are a small business owner and lacking records, there are specific steps you can take. Consider obtaining your bank accounts for the year required for filing. Next, identify each income and expense item. Also, review your calendars for the year to determine if there were any meetings, actions or activity that may serve as a reminder of income and expenses incurred during the year. Consider utilizing a tax organizer or checklist to ensure you take advantage of all deductions and credits that may be available to you. This way, you will ensure you get the best refund or the lowest tax liability.
Kemcents’ Tips
If you filed an extension before April 15, tax returns are due October 15. You have a few days to get your return submitted to avoid failure to file penalties. For more information, check out Washington CPA Services, LLC.