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Update: so I filled out all my returns, and in total I owe $2,000 for all years combined. So I figure with penalties and interest, as of now ( I used an IRS penalty calculator) Ill owe around $4000. much more manageable than the $15-20,000 I was fearing. It probably would have been around $10,000 if I didn't get the penalty for the healthcare mandate removed. that was an extra $600 each year. So, I don't think Ill be using the tax guy. My only question is will I be able to negotiate with the IRS myself? or do I need a pro for that?
Do you have documentation on issues that prevented your filing and did they also prevent you from other activities, such as work or school? The appeal written by a tax attorney or an enrolled agent is going to cite the relevant law or IRS regulation that pertains to health issues. You could try the IRS taxpayer ombudsman. I'm not familiar but you could search online and see what turns up in the IRS code.
Do you have documentation on issues that prevented your filing and did they also prevent you from other activities, such as work or school? The appeal written by a tax attorney or an enrolled agent is going to cite the relevant law or IRS regulation that pertains to health issues. You could try the IRS taxpayer ombudsman. I'm not familiar but you could search online and see what turns up in the IRS code.
I dont have any documentation. I was (semi)functioning during that time. I masked my depression with amphetamines to get through work. then drank when I was off. it was a rough couple of years. glad it's in the past. was my darkest time. not just because of the substance abuse, but the events that led to it.
It sounds like you have done your calculations manually so you may want to go online to a site where you can use a program to make sure you don't miss anything that may work to your benefit. They will also give you instructions that will help you get the W-2s you need - you can probably do that online too from the IRA.
Turbotax is one but you should also look at Taxslayer and FreeTaxUSA (each one would be followed by .com) to see which one fits your need best for the price they charge, which is quite reasonable and may save you more than the fee. They will also offer suggestions about adding the interest to what you submit. Just keep in mind that interest will continue to accrue until everything is paid in full.
It sounds like you have done your calculations manually so you may want to go online to a site where you can use a program to make sure you don't miss anything that may work to your benefit. They will also give you instructions that will help you get the W-2s you need - you can probably do that online too from the IRA.
Turbotax is one but you should also look at Taxslayer and FreeTaxUSA (each one would be followed by .com) to see which one fits your need best for the price they charge, which is quite reasonable and may save you more than the fee. They will also offer suggestions about adding the interest to what you submit. Just keep in mind that interest will continue to accrue until everything is paid in full.
thanks. I did use FreetaxUSA. I am waiting for copies of my W2s so I can complete my state taxes
Buddy of mine was in that situation. You can file the missed years at any time. There won’t be any consequences as far as getting in trouble, you’ll just get notices of interest on the unpaid balance (now that they realized you owed them back then). It’s easy to get payment plans if the lump sum is too high. They just want their money, and they don’t have the resources to over think each case, so they aren’t going to discourage anyone that’s making an effort to set it right.
Update: so I filled out all my returns, and in total I owe $2,000 for all years combined. So I figure with penalties and interest, as of now ( I used an IRS penalty calculator) Ill owe around $4000. much more manageable than the $15-20,000 I was fearing. It probably would have been around $10,000 if I didn't get the penalty for the healthcare mandate removed. that was an extra $600 each year. So, I don't think Ill be using the tax guy. My only question is will I be able to negotiate with the IRS myself? or do I need a pro for that?
I think that you can and should negotiate with them yourself. You will use IRS form 843 to request abatement of penalties. The form and its instructions are on the irs.gov website (hint, I've found it easier to use the Google, to just search "irs form 843 2017" or whatever, to get a direct link to the form, just make sure you click on the result that goes to irs.gov pages.) You do this after you've filed, and they have assessed penalties and you can see the amount, in a profile you create for yourself at the IRS website.
They let you explain the circumstances that led you to be late, but in general if you've never made such a request before, it isn't hard to get it approved. They might only approve it for one year.
And if I recall, requesting a payment plan was very easy on the IRS website through your own account portal thingie.
My issues with them when I was late took a few months to get fully sorted out. I want to say something like 4-5 months. And that was even with me paying off the base tax amounts I owed them up front when I filed my late returns! But the thing to remember, is that they didn't do anything scary to me during this time. I got a bunch of letters in the mail from them, sure, but they weren't trying to shake me down. In the end I was pretty pleased with the amount of relief I got with the penalty abatement process.
I dont have any documentation. I was (semi)functioning during that time. I masked my depression with amphetamines to get through work. then drank when I was off. it was a rough couple of years. glad it's in the past. was my darkest time. not just because of the substance abuse, but the events that led to it.
No tax advice here, but kudos for getting things squared away in your life.
Update: so I filled out all my returns, and in total I owe $2,000 for all years combined. So I figure with penalties and interest, as of now ( I used an IRS penalty calculator) Ill owe around $4000. much more manageable than the $15-20,000 I was fearing. It probably would have been around $10,000 if I didn't get the penalty for the healthcare mandate removed. that was an extra $600 each year. So, I don't think Ill be using the tax guy. My only question is will I be able to negotiate with the IRS myself? or do I need a pro for that?
You can try to do this yourself or use an enrolled agent after reviewing it. You can make payments to the IRS over time (not a lump sum) if your offer is approved by the IRS. Be sure you have the means to make all the payments agreed to if the offer is approved.
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