When people come to me for help with tax debt, one of the first things they often ask about is a repayment plan for debt relief. Here’s the reality: the IRS will not discuss any kind of payment plan until you’ve filed your last six years of tax returns. So, the first step is getting compliant.
If you have unfiled tax returns, you can run into financial and legal challenges. Sometimes, major life events or financial struggles cause people to fail to file their tax returns, but the good news is that you do not have to handle this alone.
Here’s how I can help you take the first step toward IRS debt relief by filing your unfiled tax returns:
Step 1: Documentation for Missing Years
- You need to retrieve income records and all relevant documents. I can ensure you are gathering all the right information.
Step 2: Prepare and File Returns
- With all your records gathered and in order, each return must be properly prepared and filed to be in compliance with the IRS.
Step 3: Back Tax Liability or Refund Liability
- Good news: you may be owed a refund on an unfiled tax return, but you need to claim it before the statute of limitations expires.
- You also may owe back taxes, which will have interest/penalties accumulated, so I can help you explore relief options.
Step 4: Talk About IRS Debt Relief
- Now that your unfiled tax returns for the last six years are filed, you can explore repayment plans or other relief options.
Common Mistakes People Make
- Filing Incorrectly. Errors in your tax return can cause a range of problems, including delays. Make sure all details are accurate and true.
- Missing Tax Years. Make sure to address every year that was missed; otherwise, you can be subject to IRS penalties.
- Forgoing Tax Relief Options: The IRS has programs for tax relief, which I can help you explore.
- Trying to Handle This Alone: Taxes, especially unfiled tax returns, can be a complicated process to go through. I can guide you through this to ensure compliance and relief.
When a client comes to me with unfiled tax returns, I follow a proven process to get them compliant as quickly and accurately as possible.