You Didn't File Your Taxes for YEARS...Now What?

Maybe you know someone, or have been someone, that just doesn't pay their taxes. They get overwhelmed and let it slide. They forget. They think because they might not owe anything, they don't need to file. Then suddenly, they realize they're not the exception to the rule! They have to file and pay like everyone else.

Failing to file your taxes for an extended period can be a daunting situation. However, it's important to understand that you're not alone, and there are steps you can take to rectify the situation. Here’s a guide on what to do if you haven’t filed your taxes in years, maybe even decades.

Do not panic. While missing 15 years of taxes is a serious issue, the IRS usually only requires you to file the last six years to get back into good standing. Take the first step by gathering your financial documents and working with a professional to resolve the debt safely. 

Steps to Fix Unfiled Taxes

• Get your records: Request your wage and income transcripts directly from the IRS to see what income employers or banks reported about you over the years. 

• Focus on the six-year rule: Most of the time, the IRS asks for just the last six unfiled tax years to achieve voluntary compliance for negotiations. 

• Forget old refunds: You can only claim tax refunds if you file within three years of the original deadline, meaning any money owed to you from 4+ years ago is permanently lost. 

• Hire a professional: Because your case spans a long period, talk to a Certified Public Accountant (CPA) or a tax attorney who can deal with the IRS on your behalf. 

• Set up a payment plan: If you owe money, do not let fear stop you from filing. The IRS offers installment plans, hardship statuses, or settlement options to help you pay what you can afford. 

  
  

Consider Your Options for Payment

If you find you owe taxes, consider your options for payment:

• Installment Agreements: You may set up a payment plan with the IRS to pay off your tax debt over time.

• Offer in Compromise: In some cases, you can negotiate a settlement for less than the total amount owed. If you choose this step, it's important to work with a tax professional with prior experience in preparing Offers in Compromise. These are complicated services and you do NOT want a family member, friend, or professional with no experience doing this for you!

• Seek Relief Programs: Explore any available programs that might offer relief for those with significant tax debt.

Stay Compliant Moving Forward

Once you have filed your back taxes, it’s essential to stay compliant moving forward:

• File your taxes on time each year.

• Keep organized records of your income and expenses.

• Consider setting aside funds throughout the year to cover your tax liability.

  

Conclusion

Not filing your taxes for 15 years can be overwhelming, but taking proactive steps can help you resolve the situation. By assessing your circumstances, gathering necessary documents, consulting professionals, and understanding your options, you can work towards compliance and peace of mind. Remember, the sooner you address the issue, the better your chances of minimizing penalties and resolving your tax obligations.