If you have past due tax returns, you could be accruing interest that could rack up your tax bill astronomically. It is important to consult with a full-service tax and accounting firm that specializes in back taxes in order to get back on track. If you have skipped a tax return or know you owe taxes from a prior year, consider filing your back taxes as soon as possible so you are not as susceptible to an audit. Wondering why filing your back taxes is so important? Here are three reasons the tax professionals at 212 Tax & Accounting Services want to help you file your past returns as soon as possible.
You could save yourself money. You may be owed a tax refund for a previous year’s tax return. The only way to claim this tax refund is by filing your back taxes with the IRS as soon as you can. If you owe money to the IRS when you file, the longer you wait, the more you will owe. The IRS charges interest on unpaid back taxes. Therefore, the sooner you file and start paying the taxes owed, the less interest you will be throwing away to the IRS.
You can lose loan eligibility. If you are considering applying for a car, business, or home loan, it is important to be up-to-date on filing your taxes. The loan officer will investigate your tax returns and if there are outstanding years where you never filed, your loan could be rejected. Putting your taxes in good standing, with all back taxes filed accurately, is an important step to the loan approval process. Accurate tax returns for consecutive years are also needed when applying for financial aid for higher education and when refinancing an existing loan.
You will receive all credits and exemptions. If you turn to one of our tax professionals to help file your back taxes, you can be sure to receive all the tax savings, exemptions, benefits, credits, and income exclusions available for your tax situation with the IRS. When you skip a tax return and do not file back taxes for that year, you are susceptible to a substitute return filed on your behalf by the IRS. The IRS will not take the time to ask questions about your financial situation, so you could miss out on some important credits and exemptions.
Filing back taxes is important to save yourself money, keep you in good standing with financial institutions, and to receive the IRS credits and tax benefits you deserve. It is ideal to keep up with your tax returns on the year they are due. If you have fallen behind, hiring a tax professional to help with your back taxes is the key to keeping these past returns as painless on your wallet as possible. If you owe back taxes or want a professional opinion about your tax and accounting situation, give 212 Tax & Accounting Services a call today!