Hello, I’m Juliana Hill, an Enrolled Agent and the CEO of Compassion Tax. If you’re watching this, there’s a good chance you’ve fallen behind on filing your tax returns — maybe even for a couple of years. First, you are not alone, this is much more common than people realize. The important thing is that you are ready to move forward. So let’s talk about how to actually deal with years of unfiled taxes in a practical way. Step 1: Don’t panic and don’t ignore it. The IRS already knows returns are missing in most cases. Putting it off usually makes things more expensive over time due to penalties and interest.
0:42 Step 2: Gather what you can. Start collecting the documents you have — W-2s, 1099s, bank statements and any previous tax returns. If you do not have records, don’t panic. Your tax records are usually accessible on the IRS website. You can view and print your Wage & Income Statement which tells you which companies filed documents for you. And don’t worry, you don’t need everything perfectly organized right away. Just begin putting the pieces together. Step 3: Figure out how many years are actually open. In most situations, the IRS can go back a limited number of years. A tax professional can help you determine exactly which years need to be filed.
1:29 Step 4: Work with a tax professional to prepare your returns to ensure all deductions are taken to lessen your tax burden. Having a qualified tax preparer involved removes the guesswork. You get accurate returns prepared by someone who understands the tax laws and how the IRS applies them, so you can move forward with clarity. Step 5: File the missing returns. This is the core step. Once the returns are filed, you stop the “failure to file” penalties from continuing to grow. Even if you can’t pay the full amount right away, filing is still the critical first move. Step 6: Address any balance due. After the returns are filed, you’ll know where you stand. From there, options like an installment agreement, Offer in Compromise, or other resolution programs may be available depending on your situation. One important warning: Be careful about companies that promise they can make the IRS go away with almost no documentation or that guarantee you’ll only pay a tiny fraction of what you owe.
2:43 Those claims are often unrealistic. If you have several years of unfiled returns and the situation feels overwhelming, this is exactly the kind of work I do every day. I’ve helped many people get caught up, stop the penalties from growing, and put a realistic plan in place. If you’d like help fixing your specific tax situation, you can reach out through the link in the description for a free consultation. Now it is time to relax and give yourself a pat on the back, you are already taking the first right step by learning what to do. Let’s do the rest together, and create a lasting tax solution for you!