What is a tax transcript?
If you are having a hard time filing back taxes, an IRS transcript is a helpful copy of all the tax returns that you need. Simply put, you’ll need tax transcripts and copies before filing your back taxes.
Want to learn how to get a copy of your tax return?
Take a look at how to make an IRS transcript request today!
Accessing Old Tax Returns
Although it is unclear how long you should hold onto past tax returns, our general rule of thumb is straightforward. Eventually, you may need to access documents from my previous tax years that you lost or threw in the trash. However, there is a light at the end of the tunnel.
To access tax filing summaries, you can always order a handy tax transcript. Not only will this contain information for the current tax year, but it also includes information from the last three years. The best part is that it is free to receive an online tax transcript too.
Yes, you read that right. On top of that, you can even get your tax transcript instantly if you order it online. Otherwise, ordering it by mail or phone will net you a tangible copy within a couple of weeks.
This process is especially useful for those who need to tax transcripts to handle student loan payments or mortgages.
But here is the catch: if you need a duplicate tax return or one from before the cutoff date, you will have to pay $50 to order it from the Internal Revenue Service.
In case you weren’t aware, the Internal Revenue Service keeps your last six years of tax returns on file. All that you have to do is fill out an easy-to-use form to submit this request. However, it could take up to three months to receive your copy by snail mail.
These fees can be waived away if you have experienced a national disaster. For instance, the Internal Revenue Service can expedite your tax transcript request in case of an emergency.
For the rest of us, there are a few retrieval fees and methods to learn about before you file your back taxes. Here’s what you need to know!
How to File Back Taxes
Before you pay your taxes, it is probably a good idea to get your tax transcripts together. Now that you have gathered your documents, grab the 1099 or W-2 forms that you received for previous tax years to report your annual income. For credits and deductions, you also have to collect any supporting records like receipts to prove your eligibility.
Are you missing tax documents from the last decade?
If that is the case, you can always request them from the Internal Revenue Service by filing a “request for transcript of tax return” form. But here’s the thing. You can only request this form to retrieve documents that can show support for your tax deductions.
This can include anything from:
- W-2 forms
- 1099 forms
- 1098 forms
Even though you won’t receive a copy, the Internal Revenue Service offers a comprehensive transcript of everything that you need on it. This will help you to file your back taxes like a pro. Keep in mind that it can take up to the month and a half for the Internal Revenue Service to take care of your request.
The next step is to download any missing tax forms from past years. Be sure to file your back taxes on the original documents for the years that you are filing for. Pro tip: these can be found by searching the Internal Revenue Service site.
Another rule of thumb is that you can’t fill out past tax forms with instructions from current tax years. Since tax laws are ever-changing, using older instructions might make you restart the whole process again. If all else fails, double-check your instructions to make sure that you are using the right ones for the right tax year.
Lastly, submit your tax forms to the proper address! and you’re done!
Finding out How Much You Owe
So, you’ve already filed your old tax returns. Now what?
It is always a good idea to calculate your penalties and interest at this time. Whether you’ve prepared it for the first time or filed it years ago, you have to increase any tax fees for penalty and interest charges from the IRS. Of course, this happens when you pay your taxes late.
Calculating your interest or penalties will give you a better picture of what you owe in the long run. For example, filing a tax return five months after it was due will increase your tax payment by up to 25 percent.
Once you’ve done the math, it is finally time to pay back your taxes. Depending on the amount of your IRS debt, you should pay the full amount or make installment arrangements right away. That’s because your outstanding balance will gain interest every month that it is still unpaid.
Unable to pay the full amount that you owe?
Have no fear – the Internal Revenue Service is here to work with you to create an installment plan. When your agreement is ready, you can prevent future IRS collection fees by sticking to your plan and making payments on time.
Sounds painless enough to us!
Requesting Tax Transcripts Is Easy
Don’t know how to order tax transcripts?
We are here to help. Surprisingly enough, requesting tax transcripts is easy. After you collect the documents that you need, receiving old tax returns from the IRS is super stress-free too.
Once you gather all of your information, make sure that you file taxes from previous years as soon as you can. Otherwise, the fees will keep piling up. When you’ve finished filing back taxes, remember to calculate interests and penalties that have added up over time.
Now, you’ll know exactly how much you owe the Internal Revenue Service!
Need a hand ordering your tax return transcript?
Don’t hesitate to contact us for tax help!
