Failed To File Your Taxes As An Independent Contractor? 3 Reasons You Should File Your Back Returns Right Away
If you're are an independent contractor, you don't have any taxes taken out of your paychecks. While that does mean you get to keep more of your income, it also means that you need to pay close attention to your taxes. If you've failed to pay your annual taxes, you may think that you can simply catch up next year, or when your finances are in better shape. Unfortunately, doing that could put you in serious jeopardy, especially if the IRS discovers the missing tax return before you have a chance to rectify the situation.
If you haven't filed a tax return, and you're an independent contractor, you need to contact a tax service right away. They can help get you back on track with the IRS. One way they'll do that is to ensure that your back returns are filed in a timely manner. Here are just three of the reasons why you need a tax service to help you file your back returns.
Avoid Contact With an IRS Field Agent
If you haven't filed your taxes as an independent contractor and you made a considerable amount of money, you may be contacted by an IRS field agent. If that happens, you'll be required to answer questions about your return. Unfortunately, home visits by IRS agents can be stressful and time consuming. Luckily, you can avoid the IRS visit by working with a tax service to get your back returns filed as quickly as possible.
Maintain Control of Your Own Taxes
If you failed to file your taxes as an independent contractor, you need to file as quickly as possible. Without filing your own return, the IRS may decide to file one for you. While the IRS-produced tax return will include all your income, it won't include any of the deductions you'd ordinarily be able to take. Unfortunately, that means your total amount owing will be based on the total amount of your income, rather than what remains after your deductions are tallied. You can ensure a lower tax bill by filing your own taxes.
Ensure Proper Social Security Benefits
If you're planning on utilizing social security benefits when you retire, you owe it to yourself to file your back taxes. You might not realize this, but the Social Security Administration uses your tax information to determine eligibility for social security benefits. If you've failed to file your taxes as an independent contractor, your social security records won't be complete, which means you might not receive the benefits you're entitled to when you retire. You can protect your social security benefits by having a tax service file your back taxes in a timely manner.