


Ask the community...
Has anyone tried using the IRS online verification system? I heard they have one now, but idk if it works for 488c letters.
I tried it for a different issue and it was actually pretty smooth. Might be worth checking out!
Based on your cousin's situation, I'd definitely go with an Enrolled Agent who specializes in back tax filings and IRS representation. Here's why: 1) The unfiled returns need someone who knows the IRS procedures inside and out 2) The unreported real estate sale has potential capital gains implications 3) Missing W-2s/1099s requires someone familiar with IRS wage and income transcript requests When I was behind on taxes (not 10 years, but 3), I interviewed both a CPA and an EA. The CPA was more expensive and seemed less comfortable with the IRS negotiation part. The EA I ended up hiring had previously worked for the IRS for 15 years and knew exactly how to handle everything. The EA was able to get penalties reduced through a first-time abatement request and set up a reasonable payment plan. Make sure whoever your cousin hires has specific experience with tax resolution and IRS collections, not just routine tax preparation.
Did your EA help you get any of the penalties removed? I'm wondering if the 'first time abatement' thing works if you've ignored filing for many years.
Yes, I got the failure-to-file and failure-to-pay penalties removed for the first year through First Time Abatement (FTA). For the other years, my EA negotiated reduced penalties based on reasonable cause (I had medical issues). The First Time Abatement typically only works for one tax year, and you generally need to have a clean compliance record for the 3 years before that. For someone who hasn't filed in 10+ years, they might not qualify for FTA right away, but after they get into compliance, they might qualify for the most recent year. My EA also helped me request Currently Not Collectible status temporarily when I was between jobs, which paused all collection activities. The key was having someone who knew what relief options were available and how to properly request them.
Just wanna add something important that nobody's mentioned yet. When your cousin starts filing those old returns, they should NOT use the current year's tax forms! Each year needs to be filed using that specific year's tax forms because tax laws change. I made this mistake when catching up on 3 years of unfiled taxes. I printed the most recent forms thinking they were all the same and had to redo everything. Each tax year has different rules, deductions, credits, and rates. An EA or CPA will know this, but if your cousin tries to DIY any of this, they need to use the correct year's forms which can be found on the IRS website's prior year forms section.
This is super important advice! I work at a tax office (not a professional, just admin) and people come in ALL THE TIME with self-prepared returns using the wrong year's forms. The tax code changes almost every year in some way.
Do you know if tax software handles this automatically? Like if I buy the 2025 version of TurboTax, can I use it to file my 2022 return that I never did?
Everyone's talking about whether the IRS will notice, but nobody's mentioned the statute of limitations. The IRS generally has 3 years from the filing date to audit your return (with some exceptions like fraud). So technically, they could "reject" (audit) your return years later. But for a minor discrepancy like yours, they'd typically just send a CP2000 notice (automated underreporter notice) if they catch the mismatch between your reported student loan interest and what the lender reported. You'd owe the tax difference plus maybe some interest, but probably no penalties for something that small and unintentional.
Thanks for mentioning the 3 year thing - that's actually making me more anxious lol. But good to know about the CP2000 notice. Is that something that would affect my credit score or anything?
Life pro tip: Always wait until the last minute to file your taxes so you have all your documents! I never file before April 1st to make sure I have all those corrected forms that companies love to send late. Too late for you this year but remember for next time. Student loan companies and investment firms are notorious for sending corrections.
Great advice except when you're expecting a refund! I filed in early February and got my refund 9 days later. Waiting till April would've meant two more months without that money. There's always a tradeoff.
I'm literally going through this exact situation right now. Hadn't filed since 2020 and just got everything submitted last month. Here's what happened: - No jail time (they save that for actual tax fraud not just being behind) - Had to pay about $1,200 in penalties and interest - But I also got back $3,400 in refunds from two of the years - Net positive of $2,200! Just GET IT DONE. The anxiety of not knowing is wayyy worse than the actual consequences. I used a CPA and it cost about $350 per year but worth every penny for the peace of mind.
Wait you can actually get refunds from previous years still? I thought there was a time limit?
Make sure you file all the missing years at the same time if possible. I made the mistake of filing one year at a time and the IRS systems got confused - they put a hold on my most recent return because they were still processing my prior years, which delayed everything by months. Also if you do end up owing, ask about a First Time Penalty Abatement. If you've had a clean record before this, they might waive some penalties (but not the interest).
Zainab Abdulrahman
Here's what you need to do: 1. Double-check all your documents for errors 2. Verify your income against what your employer reported 3. Check if you owe any back taxes or have outstanding debts 4. Try calling the IRS early in the morning (right when they open) 5. If all else fails, consider using a tax advocate service If none of these work, you might need to file an amended return. Don't panic though - sometimes these issues resolve themselves if you give it a little time. The IRS is dealing with a huge backlog, so patience is key. Good luck!
0 coins
Amara Oluwaseyi
β’Wow, thank you so much for this detailed response! I'll definitely work through these steps. Really appreciate the help! π―
0 coins
Connor Byrne
β’This is solid advice. I'd add that keeping copies of all correspondence with the IRS is crucial. You never know when you might need to reference something later.
0 coins
Yara Elias
have u tried turning it off and on again? π€£
0 coins
QuantumQuasar
β’lmao if only it was that easy π
0 coins