- 1). Determine which year's tax returns need to be filed. Go through your records to find out the missing tax years. If you have missed filing taxes for several years, make note of each missing year. Knowing which years must be filed is half the battle.
- 2). Check to see if the government had issued an estimated tax return. Sometimes, when taxpayers don't file taxes and the government learns of it, the IRS will complete an estimated tax return for the year. You want to file your unpaid taxes before the IRS issues an estimated tax return. The government's estimated return will not take into consideration your exemptions, tax credits or allowable deductions. They only use information they have on file that was submitted to them from employers and financial institutions. A government-issued estimated tax return usually results in a high tax liability for the taxpayer. Your actual return will supersede the estimated return.
- 3). Accumulate the necessary tax documentation. Hopefully you still have the copies of your W-2s and other tax documentation for the unpaid tax years. Fortunately, in today's electronic age it is easier to obtain old tax information from employers and financial institutions. Even if you're not able to find the necessary documentation, do the best you can to piece together your financial data using old check stubs and banking data.
- 4). Download the forms for the missing tax years. Visit the IRS website and use their search function to locate past IRS forms. The government keeps a database of tax forms that are readily downloadable from their website. When downloading the tax forms, make sure to download the associated instructions.
- 5). Complete the tax forms in accordance with the instructions. Make sure to take it one year at a time, one section at a time. Filing old tax forms for unpaid taxes can be overwhelming, especially if you have several years worth of taxes to file. Take your time to complete the forms correctly.
- 6). Mail the taxes along with your estimated payment to the IRS. Although the payment may not be the total amount due, it does show good faith that you are willing to begin resolving the unpaid tax problem. To make things easier, contact the IRS to make payment arrangements for the past-due interest and penalties. Depending on the length of time between the due date and the filing date, the accrued interest and penalties can be substantial.
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