Review Your Past Taxes
July 21st, 2009
If you find yourself owing a ton of back taxes, you may be able to reduce IRS debt by checking your past taxes for errors and adding any deductions that you may have missed. This is much more common than you think, and the IRS would prefer that you pay the proper amount you owe than too much money with a bunch of errors. You have to fill out a new tax return for that year, along with form 1040x, which notifies the IRS that you are amending a prior tax return. It may be a good idea to sit down with a tax professional when doing this. They can spot errors and deductions much better than you and I can. You’ll probably have to pay a small fee, but it will be worth it.
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