Haven't filed taxes in several years. Want to resolve dept, and get my life back on track as cheap as possible

Answer 1

Have you received any notices from the IRS? If you have, and you agree with their determination, then contact them about making payments. If the IRS has already figured your taxes, and you agree, you may not be required to file a return, since the IRS has already done it. If in doubt, ask them.

If you are required to file returns, it is usually best to start with the earliest year and work forward. For most returns, all information is contained in IRS Publication 17. It comes out every year. You can get this publication by going to IRS.gov. In the search box, put "Pub 17 2001" or whatever year. You will be taken to a link for 2001, and then a link to Pub 17.

Put this on your desktop and start reading it. It will take you through the process. After you have done it for one year, it will be vastly easier for the other years.

That's the cheap way. Hiring someone will be at least $100 per year, much more if you are self-employed.

Answer 2

I don't know what you consider cheap, because using a professional is going to cost you between $1500-6000, depending on who you hire, how many years you are behind, and the supporting documents you have, if state tax returns are involved and etc. I have spent numerous years helping people correct this problem.
Contacting the IRS now without a professional representing you is going to create a flag on your account-- if the IRS have not issued a tax lien on you--they will immediately. Also, when you call they are going to be asking you information about your bank accounts, where you now work, the work address, where you live, and etc.
If you do not make a diligent effort to correct the problem they will start seizing property, bank accounts, and your check and start prosecution procedures.
To correct the problem you will need to file all late returns, get a final amount owed figure, request a reduction in penalties, submit a offer in compromise, submit a installment Agreement Request.
Just don't be afraid to act, the IRS is more understanding when you are making a diligent effort to correct the problem, then when they have to start enforcement procedures.
Consider contacting a CPA on this issue as soon as possible, some will work with you on a fee payment plan.
Of course you can purchase the software to do your back taxes from TurboTax on line, file them and hope for the best.
You may need additional help to get the tax lien released.

Answer 3

The first step is to get your paperwork together for those years, and prepare the returns, then file them.

Depending on circumstances, you might not even owe anything if you had a job where taxes were withheld - and might even have refunds coming. If you had a job as an employee and got a W-2, the IRS probably would have contacted you by now if you owed money. If your jobs were from self-employment, they might not have though.

Good luck.

Answer 4

If you haven't filed several tax returns, the first thing to do is contact the IRS. They have offices in major cities. They offer free assistance via fax, email, and telephone. It is never too late to file.

"Failure to file a return or filing late can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more.

There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund. In order to receive a refund, the return must be filed within 3 years of the due date."

"If you are a wage-earner, and have misplaced your W-2 Forms showing your income and income tax withholding, and you are unable to obtain duplicate copies from your employer, IRS can often provide you with that information" usually by August of the year following the income.

The IRS sponsors volunteer assistance programs and offers help to taxpayers in many community locations...volunteers provide free basic income tax return preparation to individuals with earned incomes of $38,000 or less... Learn the locations, dates, and hours of the volunteer sites, by calling the IRS toll-free at (800) TAX-1040 or (800) 829–1040."

Remember that penalties start from the time you did not file, but may be negotiated if you file first and arrange a payment plan with the IRS. So do the paperwork and file the returns *now*.

The first place to start is to call the IRS with your social security number, the last year of tax information that you did file and any W-2 or paystub information you have for the years you did not file at 1–800–829–1040.

Answer 5

Cheap and Correct are generally mutual exclusive. You usually don't have one with the other.

Do you have all your information? W2s, 1099s, 1098s.

Answer 6

if you were self employed during that time...and no way to track your income...forget about filing taxes....

thankyou

Answer 7

contact the IRS.