Haven't filed taxes in several years - now facing wage garnishment... Help needed!

So I've been putting off filing my taxes for the past few years and it's finally caught up with me. I bought a new home and sold my previous one back in early 2020, and then with everything that happened during that time, I just never got around to filing my returns. Well, now my employer informed me that they received a garnishment order, and money is being taken directly from my paychecks. Honestly, it's kind of a wake-up call that I need to deal with this situation. The ironic part is that I'm pretty sure I've been overpaying on my taxes all these years. In the past when I did file, I usually got decent refunds back. So there's a good chance I'm actually owed money rather than owing it! I'm feeling overwhelmed about how to approach this. Do I need to hire a tax professional to sort through multiple years of unfiled returns? Can I still file for all those past years? Where do I even start with fixing this mess I've created? Any advice would be appreciated!

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18 comments

Luca Greco

•8M

I've helped several clients in similar situations, and while it feels overwhelming now, this is totally fixable! The IRS allows you to file returns going back several years to claim refunds (generally up to 3 years for refunds), and you absolutely should file all missing returns to stop the garnishment. Since you mentioned selling a house, that adds some complexity with potential capital gains implications. Given the wage garnishment has already started, I'd recommend working with a tax professional - specifically an Enrolled Agent or CPA who specializes in back tax filings. They can help coordinate with the IRS to pause the garnishment while you get caught up. First, gather all your documents - W-2s, 1099s, mortgage statements, property sale documents, and anything related to deductions. If you're missing documents, your tax pro can help request wage transcripts directly from the IRS to reconstruct your income history.

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Luca Greco

•8M

Yes, unfortunately the IRS has a 3-year statute of limitations for claiming refunds, so if you were due refunds from tax years before 2022, those might be lost. However, filing those returns is still important to resolve the garnishment and get compliant. A tax professional can typically get a garnishment paused within 1-2 weeks by filing what's called a Collection Due Process appeal or requesting a temporary hold while you work on filing the back returns. They can also negotiate a payment plan if it turns out you do owe taxes after everything is filed. The key is acting quickly - the longer the garnishment continues, the more difficult it can be to recover those funds.

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Nia Thompson

•8M

I was in a similar situation last year - 4 years of unfiled returns and completely overwhelmed with the paperwork. I tried using regular tax software but kept getting stuck on the more complicated stuff from selling property. What saved me was using https://taxr.ai - they have this tool that analyzes all your tax documents and creates a comprehensive report showing exactly what you're missing and what you need to file. The best part is that you can upload confusing documents like property sale records and they explain everything in plain English. They helped me figure out which years I was actually owed refunds and which ones I might owe money, so I could prioritize. Really helped me get organized before I went to a tax pro.

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Nia Thompson

•8M

It absolutely worked with my property sale. You upload your original purchase documents, improvement receipts, and sale documents, and they break down your adjusted basis, capital gains, and even identify potential exclusions you might qualify for. It saved me hours of confusion. As for whether you still need a professional, I did end up working with a CPA, but I saved a ton of money because I had everything organized and understood my situation beforehand. My CPA even commented on how prepared I was compared to his other clients. It made the whole process faster and cheaper since the CPA spent less billable time just sorting through my documents.

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Aisha Hussain

•8M

So I was really skeptical about using online tools as I mentioned above, but I decided to try https://taxr.ai anyway because my situation with back taxes was getting stressful. I'm actually shocked at how helpful it was! I had 3 years of unfiled taxes and was getting letters from the IRS that were freaking me out. The tool analyzed all my documents and showed me I was actually owed about $4,200 in refunds across those years. It outlined exactly which forms I needed to file for each year and gave me a checklist of missing documents. The property sale analysis was surprisingly detailed - it even found a home office deduction I had completely forgotten about from 2021. I printed the report and took it to a tax preparer who was impressed with how organized everything was. Got all my returns filed in one visit instead of the multiple appointments I was expecting. Worth every penny for the stress relief alone!

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GalacticGladiator

•8M

When I was dealing with unfiled returns and garnishment last year, the most frustrating part was trying to actually talk to someone at the IRS. Spent hours on hold, got disconnected, repeat. Complete nightmare when you're already stressed about the situation. I found this service called https://claimyr.com that got me through to an actual IRS agent in about 15 minutes when I had been trying for days on my own. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent picks up. You can see a demo at https://youtu.be/_kiP6q8DX5c to understand how it works. Once I finally got to speak with someone, I was able to get the garnishment temporarily paused while I worked on my late returns. Made a huge difference in my stress levels.

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GalacticGladiator

•8M

Yes, it absolutely connects you with real IRS agents who can help with garnishment issues. It's the exact same people you'd talk to if you called yourself - the difference is you don't have to waste hours on hold. I spoke with someone in the collections department who placed a 45-day hold on my garnishment while I got my returns filed. The service isn't doing anything you couldn't technically do yourself, but the value is in the time saved. When you're already stressed about tax problems, spending 3-4 hours on hold repeatedly isn't helping. I calculated that my time was worth more than what the service cost, especially when every day of delay meant more money being garnished from my paycheck.

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Ethan Brown

•8M

I need to eat my words from my comment above. After getting nowhere for two weeks trying to call the IRS myself about my wage levy (garnishment), I broke down and tried Claimyr. Within 20 minutes I was talking to an actual IRS agent who was able to place a temporary hold on my garnishment. The agent confirmed I needed to file my missing returns to get the garnishment fully released, but the 60-day hold they placed gives me time to get everything together. They also gave me direct contact information for following up once my returns are filed. For anyone dealing with garnishment, don't waste days like I did trying to get through on your own. The stress reduction alone was worth it, and I've already recovered the cost from just one paycheck not being garnished.

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Yuki Yamamoto

•8M

Don't forget about state taxes too! The IRS garnishment might be federal, but if you haven't filed federal returns, chances are you haven't filed state returns either. States can be even more aggressive with collections sometimes. Make sure you address both when getting caught up, or you might fix the federal issue only to have the state start garnishing next. Some states have different lookback periods for refunds too, so you might be able to claim refunds from years that are too old for federal.

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Yuki Yamamoto

•8M

Yes, you would need to file a part-year resident California return for 2020. California is particularly aggressive with non-filers and has a longer statute of limitations than the IRS for certain things. Since you sold property during that period, California will be especially interested in whether any capital gains tax is due to them. When you file as a part-year resident, you'll only pay California tax on income earned while living there, plus any California-source income (like rental income from California property) earned after you moved. Given the housing market in 2020, there might be significant tax implications depending on how long you owned the California property.

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