How To Fix Some Common IRS Income Tax Issues

Solve IRS Problems Before Tax Day

Tax day is coming, but this is no time to panic. It is time to figure out what you are missing and recover from it. Sure, it’s great to be able to push the button with all of your forms and documents by the IRS federal tax deadline, but problems are common. Instead of ignoring the problems (they will not go away), just try to recover as quickly as you can. You may be able to get your taxes in without really having to pay a penalty (or a very large one).

In my own contacts with the IRS, which I try to keep to a minimum, auditors are people too. Make an honest effort, and they will try to work with you. Even if you owe more money than you can pay, you can usually work out a payment plan with better terms than you would get on your credit card. The worst things to do are to ignore your taxes or just gloss over them.

Actually, the IRS website provides a lot of the help you may need. This website is at IRS.gov. Articles and forms can be downloaded. Plus, you can find toll free phone numbers so you can call for help.

How To Get Last Year’s Tax Return

I prepare my taxes online, and have the past few years, so I can print off prior year’s tax returns. This is lucky for me because I have had to do this several time! I have needed them to help me prepare this year’s forms, but also for loans and to help my kid apply for education grant. I’m a big fan of online filing. I happen to use HR Block. If you used a tax preparer, they may have also kept a copy for you.

However, if you do not have your own prior year’s returns saved, you can still recover them with forms 4506 or 4506T. You can find these tax forms online by searching the IRS website. It may take a couple of weeks to get your returns back, but the Internal Revenue Service has them.

• 4506 gets you prior year’s tax returns. There is a fee of $57 if you need a complete return. The IRS will not process the order without a check for the fee.
• 4506T gets you a transcript, which is not the actual return, but a summary of it. There is no charge for a transcript. You can also request one by phone by calling 1-800-908-9946.

How To File Late?

OK, so you need to wait 2 weeks for a prior year’s return, or you need to request some other financial form so you can file accurately. The IRS has a form for this too. This is form 4868 – Application For An Automatic Extension.

Now just because the process to fairly automatic, does not mean you are relieved from an obligation to pay your taxes. Your application for an extension should be accompanied by a check for the estimated amount due (if any).  The application for an extension of the time to file is NOT an application for an extension for time to pay!

What If You Cannot Pay The Total Tax Bill?

The IRS says you should pay as much as you can, but you can request a payment plan. Your penalties for filing on time, but paying late, will be much lower than they would be for filing late. Learn more about what to do if you cannot pay taxes on time from the IRS website.

Lost Documents

People do lose their W-2 and 1099 forms from time to time. Their could be a fire or a computer hard drive crash. Your best bet to recover missing documents would be with the issuing company. If that is not possible, try calling the IRS for help. They do get copies of forms from employers, etc. Form 4852 is a substitute for a W2. To use it, you should have a good estimate of your income from some document like a final pay stub or account statement.

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