Will I go to jail if I haven’t filed my taxes?
Unlikely, but the IRS is authorized to collect tax, interest, and penalties due in a variety of ways and they are all invasive and distressing for taxpayers.
The IRS is demanding I pay the whole amount by this date and I don’t have the money
Good News! You do have options, but acting in a timely manner is critical.
Be sure to explore all available choices to ensure you’re fully informed and ready to make the best decision.
The IRS has options for full pay installment agreements, partial pay installment agreements, and other offerings that may be available depending on your situation. These options are not available in all situations so having a plan is critical
Can I do it on my own or do I need to hire a professional to help me?
Short answer is, It depends.
Every situation is different, but tax problems escalate quickly if ignored or handled improperly. For balances under $25,000-$50,000 taxpayers can set up Streamlined Installment Agreements online. The balance including additional penalties and interest must be paid within 72 months. Additionally all tax returns for the prior 5 years must be filed. https://www.irs.gov/payments/online-payment-agreement-application
I just got a letter in the mail from the IRS, what should I do?
First… take a few deep breathes. The IRS is scary but no matter the problem, their are solutions. Ignoring the problem now will only make it grow.
Open the letter and read it carefully.
Look for what the IRS is asking for
(Identity Verification, Documentation, Proposed Changes, Request for payment)
Do you understand and agree with what the letter is requesting? If yes, take action before the deadline.
If the changes or request don’t make sense to you, or you aren’t able to comply… Consider seeking professional help.
What can I do before seeking professional help?
If you are a self starter who files your own returns to save money, you have options before contacting a CPA, Enrolled Agent or Tax Attorney.
Create an account at IRS.gov
This will give you access to account transcripts that show you what income documents have been submitted, your filings, and account activity.
Do research about the notice type, review your transcripts, verify information using multiple sources found using Artificial Intelligence/online as not all information is accurate or current.
Gather any documentation you have relating to the inquiry and consider scanning or taking pictures to have a backup of important records.
What If I haven’t filed returns for several years?
It Depends… but the most important thing is to get the returns filed for the prior 5 years and current year to be eligible for certain IRS installment agreements and other programs.
Processing time might be a factor to consider. You will only be able to e-File a self prepared return for the current tax year. Tax Professionals are able to access IRS Modernized e-File system which allows them to e-File the current year and prior two years. Older returns must be paper filed and mailed but can be prepared by a professional, through FreeTaxUSA, or other free or paid options.
Resolve Tax Strategies 