I didn't file tax returns for two years

[cronewitch]

I forgot

I had all the paperwork and filled out spreadsheets to compute my refund amounts and just didn't get it done.

I know how to do taxes and prefer the old fashioned hand computing before I use software to be sure they match my answer.

I was going to efile but didn't get it done and don't have paper forms.

What is the easiest way to get the paper forms? I could probably download from irs.gov or order them by phone, is their an easier way?

I procrastinated because my broker sometimes amends my 1099D and I don't like to amend my returns. Once you don't do one year it is harder to do the next electronically, I don't want to forget a third year or I will never catch up. I still have all my documents.

Separate question for 2012 should I sell my taxable investments with long term gains before year end or just enough to get to the top of the 15% bracket.

Should I pay my Jan 1 mortgage payment in December like usual or leave the deduction for 2013?

I am getting lots of long term gains income in my taxable accounts and won't get my Christmas bonus until next week or see what my total investment income is so planning for the upcoming unknown tax laws is hard. If they raise long term gain rates I would want them early.

Should I sell my stocks that pay good dividends before the rates go up?

I haven't been harvesting tax losses because they just offset gains so I wouldn't benefit from them. Maybe next year I should sell the losers.

[TheOtherMe]

The easiest way to get prior year forms is to download them from irs.gov. If you have your information already in tax software, you can print the returns out and file them.

No, you don't want to forget a third year. If you are getting refunds, get those returns filed ASAP because there is a time after which you will not get the refunds. If you do owe, the penalty for failure to pay keeps running.

At this point, I don't know if anybody knows what the tax law will be for 2013. All we can deal with at this time is the current law.

[mwcpa]

"What is the easiest way to get the paper forms? I could probably download from irs.gov or order them by phone, is their an easier way?"

Yes, it is, unless you have an old version of turbo tax, you can "print" the forms from that software, you just cannot e-file for 2010 or 2011.

"Separate question for 2012 should I sell my taxable investments with long term gains before year end or just enough to get to the top of the 15% bracket. "

That depends.... I have a number of clients who I am recommending consider selling some of the long term gains to avoid the "fiscal cliff tax rates" and the 3.8% medicare surcharge. Taking the "prudent investment" part of this decision out of the equation, if you expect that your income will be 200K (250K for a married couple) in 2013 then selling gains now will save you the 3.8% tax.... also, the same threshold applies for the President's new income tax rates for 2013, but I saw a CNN news flash that Mr. Boehner seems to be agreeable to have tax rates rise on those making 1 million or more.... lot's a variables that are still unresolved.

"Should I pay my Jan 1 mortgage payment in December like usual or leave the deduction for 2013?"

Same issue above, but here one of the discussions for 2013 is to "limit" deductions.... the talk is to limit them on the "rich" or to a fixed percentage or give the deductions a break at a lower tax rate.... again, lots of variable that are unresolved....

"Should I sell my stocks that pay good dividends before the rates go up?"

Same as the two above.... way to many variables that Congress is pontificating about.....

"I haven't been harvesting tax losses because they just offset gains so I wouldn't benefit from them. Maybe next year I should sell the losers. "

Under current law, losses can offset gains (you net the number) and then you can take as a current deduction any "net loss" up to 3,000 against other income reported..... so, saving losses may provide limited benefit.... proper investment decisions should come into play (if you have a loser that keeps losing and you do not want to sell it to save the tax loss, well, that does not make sense.... you invest 1,000, it drops to 700, but you do not want to sell so you can save the tax loss and it then drops to 100.... the extra tax loss is not worth the money lost)