Need to resolve unfiled tax issues!?

Question

I haven't filed my personal tax returns for the past 4 years...I own a small business and have recently been divorced. I need help..am unable to sleep at night from worrying about this. Do I contact a tax attorney or someone with the IRS first? Haven't received any correspondence from the IRS, but am just waiting and worrying! Please don't tell me what a stupid choice I have made...already beating myself up daily. Just want to resolve this issue and move on. Thank you!!!

Answer 1

Bottom line, you should file any and all late tax returns with a tax professional. You will get refund checks if the return is less than 3 years late. And you will prevent collections activity on the earlier tax years. If you owned a business for the last 4 years you havent filed, that means you did not report an income. You will need to file schedule C's with those returns, so keep track of any and all business expenses you have had for the tax years in question.
Just because you havent physically recieved a letter, doesn't mean you do not have any tax liability. And, the longer you wait, the worse the penalties and fines get. Filing your tax returns can be the quickest way out of tax trouble.

Heres what you need to do:

1. Gather All Your Tax Documents~Do you have W-2s and other tax documents for the years you need to file? If you are missing any crucial tax documents, you can request copies of your tax documents from the Internal Revenue Service for free.
2. Prepare the Tax Returns or Hire a Tax Professional. Good reasons to hire a tax pro: if you need advice on how to handle incomplete tax documentation, or an advocate who will negotiate with the IRS on your behalf.
3. Protect Your Tax Refunds. Heed the statute of limitations for claiming a refund. Your plan of action should provide an estimate for how long it will take to get your refund checks. If you owe other tax debts, you need to know how much of your refunds will be applied to other tax years. If you think you might owe next year, you should plan on making estimated tax payments to avoid owing.
4. Pay off Your Tax Debts. Your plan of action may be as simple as setting up a monthly payment plan, or writing a check for the full amount. But you need to have a plan, because ignoring the IRS can get you into big trouble real fast.
5. Plan Ahead. This is a good opportunity to review your overall tax situation, and to come up with strategies for reducing your taxes and achieving your financial goals.

Since time is of the essense, get started right away. Find out from the IRS where the local service center is nearest you, and hand-deliver the completed paper returns as soon as possible. Good luck.

Answer 2

First things first. If the IRS has not contacted you then you need to do the following. If you were married for any of the tax years in question you will have to file a married, filing joint or married, filing seperate return; or if circumstances dictate you can file as head of household. For each year inclusive you will need to compile your yearly totals and visit with any competent tax preparer. Said preparer can put together for you your 2002, 2003, 2004 and 2005 tax returns. The IRS appreciates the fact that you are voluntarily coming forward and filing your returns; and will work with you. Get your returns finished and see if you owe or are due refunds. It is a doable thing so quit losing sleep; you are not alone as quite a few people get into the same rut. Good luck.

Answer 3

You should never contact IRS first.
They will start to notice you haven't filed (if required) and will haunt you.If your business is not incorporated nor a partnership it is hard for them to track/find you.
What you need is a good tax preparer experienced with small businesses to file the un-filed returns. Suggestions are CPA's or Enrolled agents, small tax prep firms or accountants that prepare taxes. (the larger tax prep firms usually deal little with small businesses compared to individuals just needing to itemize).
However, if your business has employees
make sure the employment taxes paid. Not paying employment taxes fall under stricter rules.
Once filed, be prepared to pay interest and penalties if you owe taxes.
Did your wife not file as well ?
She probably wont want to file joint with you now.
SO you may either be honest and file as married filing separately or simply single if never filed together with her till now.

Answer 4

This year I filed that many years back personal tax returns too. I didn't contact an attorney because I knew I was getting refunds. I filed 1040a and used standard deductions so I didn't raise any audit flags. Everything went fine.

Answer 5

Go into a Jackson Hewitt or H an R block (preferably the the first one) and tall them what the deal is. Bring all ur paperwok in and get it over with. You can go in now if u want. Some tax places are giving classes and wil be in the office to help u out

Answer 6

your best bet is to contact the tax attorney. You still may have time to do something about the last three years the forth may still be a problem. Do not contact the IRS until you have sought some real legal tax advice.

Answer 7

I agree with the Enrolled Agent. One thing I didn't see in his(?) answer is this: you have 3 years after the due date of the return to claim a refund if due. If you owe, the statute of limitations does not start until you file.

Answer 8

Rams God answer is correct, I would only add that an EA or CPA could use the IRS E-services program to obtain a transscript of your account to be sure you don't miss a W-2 or 1099.