Falling behind on tax returns is more common than people think, and it is almost always fixable. The longer you wait, though, the more penalties and interest pile up.
Where to start
- Request your wage and income transcripts from the IRS.
- File the most recent six years first.
- Claim every credit and deduction you are entitled to — the IRS will not do it for you.
- Ask for first-time penalty abatement where it applies.
- Set up an installment agreement if you cannot pay in full.
Filing on your own initiative, before the IRS contacts you, nearly always leads to a better outcome.
