Back Taxes, Unfiled Returns, Need Advice

[LetsRoll108]

What is the name of your state (only U.S. law)? Maine

Well all of my anxiety, procrastination and advoidance has come to a head. I am 27 years old and have made some serious tax mistakes over the past few years and I need help getting things moving in the right direction.

2002-2003: These years I had unemployment wages and a job delivering newspapers as a subcontractor. Neither of which were taxed during the time I did them, so when I filed I freaked out at what I owed and left them off the return. Now I owe roughly $3,000 in tax, penalties and interest. I recieved a garnishment notice from my employer and called the IRS to try and fix things with a payment plan but:

2005 & 2006: I owed money these years as well, and filed extensions and never ended up filing. The guy at ACS told me I needed to file these before I could set up any payment arrangement and gave me until the 13th to fax these in, he also mailed me all my W-2 documentation for these years since I have no saved records.

I know I have made some really big mistakes, but I am trying to get things worked out now without the IRS taking 80% of my pay. I have an anxiety disorder that has made me want to advoid dealing with this at all costs, but I know have that in check and need to get working on this. Any advice on how to proceed would be greatly appreciated.

[irsos]

Originally Posted by LetsRoll108

What is the name of your state (only U.S. law)? Maine

Well all of my anxiety, procrastination and advoidance has come to a head. I am 27 years old and have made some serious tax mistakes over the past few years and I need help getting things moving in the right direction.

2002-2003: These years I had unemployment wages and a job delivering newspapers as a subcontractor. Neither of which were taxed during the time I did them, so when I filed I freaked out at what I owed and left them off the return. Now I owe roughly $3,000 in tax, penalties and interest. I recieved a garnishment notice from my employer and called the IRS to try and fix things with a payment plan but:

2005 & 2006: I owed money these years as well, and filed extensions and never ended up filing. The guy at ACS told me I needed to file these before I could set up any payment arrangement and gave me until the 13th to fax these in, he also mailed me all my W-2 documentation for these years since I have no saved records.

I know I have made some really big mistakes, but I am trying to get things worked out now without the IRS taking 80% of my pay. I have an anxiety disorder that has made me want to advoid dealing with this at all costs, but I know have that in check and need to get working on this. Any advice on how to proceed would be greatly appreciated.

Due to your anxiety disorder, I suggest you hire a tax professional with experience in IRS collections. The returns simply need to be filed and an agreement made but you may not be in the best state of mind to do this by yourself. My website has a lot of information on IRS collections. Go to: [url=http://irsos.com/levywa.htm]Help dealing with an IRS wage levy - sometimes referred to as a wage garnishment.[/url]

[LetsRoll108]

Any recommendations, I can't find anyone local and all of the national services just seem like scam artists from their ads.

[TinkerBelleLuvr]

Look for a accounting tax firm who is open year round. Ask how they handle these types of cases. Do they have a CPA or EA on staff if they need to go tax to tax with the IRS.

[LdiJ]

Originally Posted by Ginny J

Look for a accounting tax firm who is open year round. Ask how they handle these types of cases. Do they have a CPA or EA on staff if they need to go tax to tax with the IRS.

I agree.

Step one is to prepare all of the returns and see where you stand as a whole. Step two will be to decide how to handle things once you know where you stand as a whole.

I will tell you however that the IRS won't take 80% of you pay if you handle things properly with them. They are actually pretty reasonable about setting up affordable (tight sometimes but affordable) installment plans.

Do NOT hire one of those national firms that advertise that they can solve your IRS problems for "pennies on the dollar".