Haven't done my taxes in 3 years - how do I catch up with IRS?

The good news is that catching up on unfiled tax returns is actually a pretty straightforward process, even if you're currently outside the US. First, don't panic - you're taking the right step by addressing this now. Start by gathering all your income documents (W-2s, 1099s, etc.) for those missing years. If you don't have them, you can request wage transcripts from the IRS using Form 4506-T or through your online IRS account. For each year, you'll need to file using that specific year's tax forms - don't use 2024 forms for 2022 taxes, for example. The IRS generally focuses on the last 6 years for unfiled returns, so your 3-year situation is definitely manageable. Since you're living abroad, you might also qualify for the Foreign Earned Income Exclusion (Form 2555), which could significantly reduce your tax liability if you meet certain requirements. The penalties typically include failure-to-file penalties (5% of unpaid taxes each month, capped at 25%) and failure-to-pay penalties (0.5% per month), plus interest. However, if you're due refunds for any of those years, there are no penalties - though you only have 3 years from the original due date to claim refunds.

I was in a similar situation last year - 4 years unfiled while dealing with health issues. What really saved me was using https://taxr.ai to analyze all my old documents and past income. I was completely overwhelmed trying to piece together my financial history, but their AI system organized everything and identified deductions I would have missed. It was especially helpful since I had some 1099 work mixed with W-2 income, and I wasn't sure how to handle everything correctly. The system even flagged potential audit triggers and helped me understand which forms I needed for my specific situation.

I have to follow up about my experience with https://taxr.ai after being so skeptical. I ended up trying it for my own 2-year backlog of unfiled taxes and I'm honestly shocked at how helpful it was. The document analysis saved me days of sorting through paperwork, and it caught several deductions I would have completely missed. What I found most valuable was how it explained the consequences of different filing options specifically for my situation. The personalized guidance made me feel much more confident about catching up correctly. If you're drowning in unfiled returns like I was, it's definitely worth checking out.

If you need to contact the IRS (which you probably will during this process), good luck getting through! I spent WEEKS trying to reach a human at the IRS about my unfiled returns. Finally discovered https://claimyr.com which got me connected to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c Before finding this service, I had made 11 attempted calls and waited on hold for hours only to get disconnected. With Claimyr, I was able to get clear answers about my specific situation and penalties. They handled the whole calling and waiting process, then connected me once an agent was actually on the line.

I need to admit I was completely wrong about Claimyr. After expressing my skepticism, I decided to try it anyway since I was desperate to resolve my unfiled tax situation. The service actually delivered exactly what they promised. I got connected to an IRS representative in about 35 minutes, when I had previously spent hours getting nowhere. The agent I spoke with helped me understand exactly what I needed to do to file my back taxes and explained my payment options. I was able to set up a manageable payment plan for what I owed. Having a direct conversation with the IRS gave me peace of mind that I was handling the situation correctly. Sometimes being proven wrong is actually a good thing!

One thing nobody's mentioned - if you were OWED refunds for any of those years, you may have lost them! You only have 3 years to claim a refund. So if you were due a refund for a return from 3 years ago, you're right at the deadline to still get that money. That's why it's so important to file ASAP. Even if you can't pay what you owe right away, at least file the returns to stop additional penalties and protect any refunds you might be entitled to.

Does anyone know which tax software is best for doing multiple years of back taxes? I tried using TurboTax but it seems like they charge separately for each tax year, which gets expensive fast.

Being abroad definitely complicates things, but it shouldn't prevent you from getting caught up. One important thing to keep in mind - if you have any foreign bank accounts with aggregate balances over $10,000 at any point during those years, you'll also need to file FBARs (Foreign Bank Account Reports) for each year. These have separate penalties that can be pretty steep. Also, since you mentioned you've been abroad for work for 8 months, make sure to look into the Foreign Earned Income Exclusion and Foreign Tax Credit options. Depending on how long you've been there and whether you meet the bona fide residence or physical presence tests, you might be able to exclude a significant portion of your foreign earnings from U.S. taxation. The key is to tackle this systematically - gather all your documents first, then file the oldest year first and work your way forward. Don't let the overwhelm paralyze you - you're already taking the hardest step by deciding to address it.