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How to File Back Taxes for a Home Business

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Although taxpayers are required to file taxes annually and on time, many taxpayers encounter difficulties which prevent them from submitting their return by the due date. The IRS provides many resources to help you obtain the right filing forms and instructions, and make payment plans if you owe back taxes. Filing late returns is a fairly straightforward process.

Step 1

Obtain the appropriate tax forms. Visit the IRS website at to download and print the correct tax forms and instructions for the year in which you are filing a return. If you file with the wrong form or follow the wrong instructions, then you will inevitably end up with incorrect calculations. Make sure that you obtain the correct forms and instructions. If you want to file an original form, you need IRS Form 1040. If you want to file an amendment, you need IRS Form 1040X. In addition, you must complete a Schedule C to and include it in your return, regardless of whether you are filing the 1040 or 1040X. Alternatively, you can request the forms by calling (800) TAX-FORM and they will be delivered in the mail.

Step 2

Fill out the forms following the instructions provided with the forms. Provide all 1099 income as well as W-2 income, deductions, losses and capital gains on the appropriate schedules. Prepare Profit or Loss From Business on schedule C. Your total gross income from business includes amounts reported on a 1099-MISC for services, invoices paid and sales receipts. Checked for inconsistencies and errors when finished.

Step 3

Calculate taxes that are due or your refunds. You are required to file for a refund within three years from the date the tax return was due. That refund is forfeited if not claimed within three years. By filing before that deadline, you can get your refund from the IRS.

Step 4

Sign and date your tax return when completed. Send the completed tax return to the address indicated on the instructions. You must send previous year’s tax returns by mail and not electronically. Attach your money order or check if you owe tax. If you owe tax and are unable to pay the full amount, then include IRS Form 9465 to request a payment agreement. You may be granted an installment payment schedule. Allow up to eight weeks for processing of your return. Be sure you keep a copy of your tax return for your records.