How to Get Help With Filing Back Taxes

Facing unfiled tax returns can be stressful, but becoming compliant with federal and state tax obligations is a manageable process. The primary way to resolve the issue is to gather your financial records, prepare the correct forms for each year, and understand the options for addressing any tax owed.

Gathering Your Tax Information

The first step in tackling back taxes is to collect all necessary income documents for the years you need to file. These forms report your earnings to you and the IRS. The most common is Form W-2, which you receive from an employer. For income earned as an independent contractor, you would receive a Form 1099-NEC. Other income sources are reported on forms like Form 1099-MISC for miscellaneous income such as rent or prizes, and Form 1099-INT for interest income.

If you are missing documents, the most reliable method to retrieve this information is by requesting a tax transcript from the IRS. The “Wage and Income Transcript” is useful as it shows data from all information returns the IRS has received, such as W-2s and 1099s. You can request transcripts online through the IRS “Get Transcript” service, by phone, or by submitting Form 4506-T by mail.

Beyond income, gathering records that support potential deductions and credits is an important part of the process, as these can help lower the amount of tax you owe. Look for documents such as Form 1098-E for student loan interest and Form 1098-T for tuition payments, which could make you eligible for education credits. Keep records of other potential deductions, such as receipts for business-related expenses if you are self-employed, documentation of charitable contributions, and records of medical expenses. For those who itemize deductions, information on state and local taxes paid, as well as mortgage interest, is also beneficial.

Preparing and Completing Past-Due Returns

Once you have gathered your financial documents, you must prepare the returns using the specific tax forms for the year you are filing. For example, a 2020 tax liability must be reported on a 2020 Form 1040. The IRS website maintains an archive of prior-year forms and instructions available for download.

It is recommended to complete your past-due returns in chronological order, starting with the oldest year first. This is important because certain tax attributes can carry over from one year to the next. For instance, a capital loss or a net operating loss from a business could impact the following year’s return, and filing chronologically ensures these carryovers are applied correctly.

The process of completing the forms involves transferring the data from your W-2s, 1099s, and IRS transcripts onto the corresponding lines of the tax return for that specific year. The fundamental task is to report all income, claim all eligible deductions and credits, and calculate the final tax liability or refund. Following the specific instructions for each year’s forms is the best way to ensure accuracy.

How to File Your Completed Back Tax Returns

Unlike current-year returns that can be filed electronically, prior-year returns must be filed by mail. The IRS e-filing systems are set up to process only the current year’s returns, making paper filing the required method for back taxes.

You must mail each year’s tax return in a separate envelope to the IRS. Do not combine multiple years into a single package. The correct mailing address depends on the state you live in and whether you are including a payment. The IRS provides a dedicated page on its website with a list of mailing addresses for Form 1040.

Once you have mailed the returns, be prepared for a longer processing time compared to e-filed returns. A paper-filed return can take six to eight weeks or more for the IRS to process. After the IRS processes each return, it will send you a notice in the mail that will confirm the receipt of your return and detail the outcome—whether you have a balance due, are owed a refund, or if the return was accepted as filed.

Addressing Your Tax Bill

Upon filing your back taxes, you may discover you have a tax liability that you cannot pay in full. The IRS offers several programs to help taxpayers manage their debt. One of the most common is an Installment Agreement. Taxpayers who owe a combined total of less than $50,000 can set up a long-term plan to make monthly payments for up to 10 years. You can apply by filing Form 9465 or by using the IRS’s Online Payment Agreement (OPA) tool.

For those facing significant financial hardship, an Offer in Compromise (OIC) may be an option. An OIC is an agreement with the IRS to settle your tax debt for a lower amount than what you originally owed. The IRS considers an OIC when there is doubt the tax can be collected or if paying the full amount would cause economic hardship. You can use the IRS’s OIC Pre-Qualifier tool to check your eligibility before completing Form 656.

It may also be possible to have certain penalties removed through a process called penalty abatement. The most common relief is First-Time Penalty Abatement, which may be granted if you have a clean three-year compliance history prior to the year the penalty was assessed. You can also request abatement based on “reasonable cause,” which applies if you can demonstrate that you were unable to file or pay on time due to circumstances beyond your control, such as a serious illness or natural disaster.

Professional Tax Assistance Options

If filing back taxes feels overwhelming or your situation is complex, seeking professional help is a valid option. Several types of professionals are qualified to assist with tax matters, and understanding their roles can help you choose the right one.

Certified Public Accountant

A Certified Public Accountant (CPA) is a state-licensed accounting professional who can provide services including tax preparation, planning, and representing clients before the IRS. CPAs are well-suited to handle complex financial situations involving business income or investments and can help reconstruct financial records.

Enrolled Agent

An Enrolled Agent (EA) is a tax practitioner federally licensed by the IRS. EAs specialize exclusively in taxation and have unlimited rights to represent taxpayers before the IRS on any tax matter. Their focused expertise makes them a strong option for dealing with complex tax compliance issues, including filing multiple years of back taxes and negotiating with the IRS.

Tax Attorney

A tax attorney is a lawyer who specializes in tax law, and their primary value lies in handling complex legal issues. This includes situations involving significant tax debt, potential tax fraud, criminal investigations, or disputes that may end up in U.S. Tax Court. A tax attorney is the most appropriate professional if your situation involves legal complications or requires attorney-client privilege.