If you haven't filed a tax return in a while, you may be wondering what options you have. It is surprised to know that filing back taxes may be the most effective method to get rid of your tax problems. You do however need to protect yourself and have a plan.



Step One



Get all of your information for each year you did not file a tax return. Analyze carefully any missing information to ensure the return you file is correct. A great number of taxpayers with unfiled back tax returns have lost their tax records. You may get in touch with the IRS to demand a wage and income transcript. This transcript will offer you the wage and income information you're missing. Providing that you were self employed you need to work with an accountant to help determine estimates for you.



Step Two



File your past due IRS returns. The question needs to be asked whether to file your IRS back taxes yourself or hire a specialist. If you decide to do it yourself be sure to use reliable tax software. You should plan on spending two to three hours on each tax year. On the contrary, selecting a tax specialist may not only help you prepare for filing back taxes but also handle the IRS for you.



Step Three



Protect your refunds. It is best to know there are strict time limits for statute of refunds, audits and collections. You should also know that the refunds may be taken to offset those other debts if you owe taxes for other years.



Step Four



Handle the tax debt that is owed. It is best to make a plan for how you will pay back your tax debts. It is necessary for you to have a plan to protect yourself from IRS assessments, levys, liens and seizures. This will often demand a professional professional to help you resolve these issues. Your plan could be as simple as setting up a monthly payment plan or writing a check for the full amount. Regardless of your situation, you need to have a plan, because neglecting the IRS can get you in trouble fast.



Step Five



Make plans in advance. If you found yourself owing in past years, you should do several tax planning for the current year. You should change the withholding in your paycheck by completing a new W-4. Provided that you make estimated tax payments they should be adjusted to fulfill your tax liability.