The typical tax deadline is April 15th. With an extension, you can extend your due date to October 15th. One important thing to note about an extension is that it is ONLY an extension to file not to pay. If you do not pay the IRS by April 15th, penalties and interest will begin adding onto your balance that is due. If you know you will not be able to file or pay by April 15th, it is a good idea to submit for an extension because each month that taxes are unfiled, there will be a 5% failure to file penalty added onto the taxes owed (up to 5 months). Still, there will be only a .5% penalty for failure to pay taxes.
Mistakes happen, that is a fact of life. The IRS encounters thousands annually. The IRS’s complicated tax laws are overwhelming for the average taxpayer. Every tax season, something is bound to go wrong. In light of all the errors that inevitably occur, the IRS has created ways for taxpayers to amend tax returns that were filed incorrectly.
The IRS usually corrects math errors on tax returns, so if you received a letter about this, it does not mean that you need to amend your tax return. In addition to that, they usually request forms that are missing (like a W-2) when they process original returns. If the IRS has done this bit of work on your behalf, it will not be necessary to file an amended tax return.
Generally, you have three years to amend an old return. However, there are a few exceptions. In particular, if you forgot to report a loss on a bad liability or claim a foreign tax credit, the three-year limit does not apply.
The IRS lets you amend returns for several reasons. If you’re trying to reduce the amount of tax owed in a previous year, you should focus on the following changes:
As long as you act swiftly, you can still receive your Tax Return. However, making sure that you fill out all of the correct columns of Form 1040X can be a bit tricky.
The IRS takes about 12 to 16 weeks to deal with amended returns. If you have an outstanding tax bill, any reductions get applied to your bill. If there’s any money left, you get that as a refund.
Forgot to claim a tax credit? Did you tick the wrong status box? If there are mistakes like that on a previous return, it pays (literally) to amend that return. If you are not sure about the details of your Tax Situation or you’re unsure of some specific Tax Laws, consider contacting a professional to help you with this step of the process. We have a diverse tax team that has helped taxpayers amend tax returns time and time again.
Filing Back Taxes is a complicated process. If you have not filed for years, you probably lost important Tax Forms and documentation. A Substitute Return form can be very useful when filing back taxes owed.
IRS Form 4852 is a substitute tax form. It can be used as a substitution for Form W-2, Wage and Tax Statement, or Form 1099-R. In order to use the form you must attach one of the following forms; whichever corresponds to your situation:
File a Substitute Return if you are missing Tax Files such as your W-2. It can be used to report distributions from Pensions, Annuities, Retirement, Profit-Sharing Plans, IRAs, Insurance Contracts, or other related sources.
Form 4852 is not to be confused with a Substitute for Return. The IRS may file a Substitute for Return or SFR if you do not file your taxes on time. The IRS uses the information returned to them from third parties in order to complete the form. The tax owed for an SFR is usually higher because the taxpayer only gets the standard deduction and usually one exemption. So it would be to your benefit to file your taxes one your own before the IRS does it for you.
IRS will usually file you as Single or Married Filing Separate. This means even if you are married or have gained/loss dependents, they will not be counted as deductions. Business losses or other related deductions that you could have taken advantage of will also be omitted.
If you are having trouble gathering additional Tax Documentation that is needed for completing your Tax Returns, consider working with a Tax Professional. It’s very important to file your returns in a timely manner if you want to avoid trouble with the IRS.
As you prepare to file your taxes, whether it be for the past or present, you will need to have your W2 to pay and file current or old taxes accurately. The W2 is also called the “Wage and Tax Statement,” and is a document created by the IRS. Whatever year you are filing for, you need to make sure you have a W2 from your employer or at least be able to retrieve the numbers you need from it. For 2010 statements, Employers, by law, have until February 1st, 2011, which means you should be concerned if you do not get it by mid-February.
When trying to figure out your estimate, you can always look at your last pay stub or pay statement or even a mid-year statement to make an approximation for payment, as you can always request an extension to file (which is not an extension to pay).
Send Form 4852, Substitute for Form W-2, Wage and Information Statement
Before doing the latter, check to see if a software provider like TurboTax can retrieve the information, so you don’t have to amend your tax return later potentially. If not, submit Form 4852. When you submit Form 4852, make sure you submit your 1040 form because you still need to file your taxes even if you do not have your W-2. Just do the best job you can in estimating withholdings and earnings. If you expect a return, realize that it will take some time for the IRS to review the statement and verify that the numbers are right. If you have multiple W-2’s, you will need a separate form for each.
The IRS may let you know of any discrepancies later once they review your estimation vs. the actual data. However, if you realize differences first (e.g., you received a W-2 after you completed this step), then you need to use Form 1040X. This form is called Amending a US Individual Tax Return. It is best to work with a resolution firm or use a software program, as many taxpayers are susceptible to mistakes due to the sophisticated code. If you face difficulties, work with a tax professional such as a CPA, registered preparer, Enrolled Agent, or tax attorney.