So i am contract labor and have not paid any attention to the IRS for 3 years.?

Question

HOw do i resolve this without going to jail or payin on it for the rest of my life?

Answer 1

You'll probably able to resolve it without going to jail, but you're eventually going to have to pay something. I would suggest contacting a lawyer about it and see what he suggests. The longer you put it off, the worse it's going to get. And, they want the money so they don't usually put people in jail except as a very last resort.

HTH

Good luck.

Answer 2

The IRS has a special procedure for coming forward on your past tax returns. They require the past six years returns in cases where there may be a balance due. As you say you have been behind for three years, you will have to file all three years.

The first step is to see a qualified tax accountant who specializes in bringing multi-year filers back into compliance. These people have developed relationships with their local IRS and can assist you in getting waivers of the penalties for failure to file and late payment.

Once you know the full extent of your balance due, you can determine whether or not it is "affordable" over the long haul. If it is not, the tax practitioner can assist in filing for an "Offer In Compromise" (OIC) to pay a reduced or lessened amount. These are generally designed for persons in hardship circumstances, so this may not apply to you. They can also assist in setting up a payment plan.

You should begin the process of resolving this situation ASAP. Many times, the situation is not as bad as the taxpayer fears. The only way to know for sure is to knuckle down and get the job done.

To prevent this from happening in the future, remember that the computation and preparation of your tax returns can be done much earlier than the tax needs to be paid. You can always set up payment plans if you don't have enough money.

Once you have prepared the tax returns and know your total balance due, raise your fees or work more hours to pay off your debt sooner.

Answer 3

You really need to talk to an accountant or a lawyer. It is not against the law not to pay your taxes and the IRS will work with you. They may accept an offer to pay a lessor amount.

Your big problem is failure to file a tax return. That is against the law and you can go to jail.

Fisrt thing is to get back returns filed. The you can figure out how to pay them. A tax guy can figure all kinds of deductions since you are, in effect, self-employed and is worth every cent you pay them.

Answer 4

If you were due a refund, you have up to three years to file. If you need to pay the IRS you need to contact them quickly to resolve the issues because intrest accumulates on the amount you pay them.

Answer 5

See a tax attorney.