Haven't filed taxes since 2021, owe back taxes - how to get relief and catch up on unfiled 2022/2023 returns?

Filing back tax returns is definitely the right first step, so good on you for wanting to get this sorted out. The IRS actually has several programs to help people in your situation. First, you'll need to prepare and file those missing returns for 2022 and 2023. You can still find the forms for those years on the IRS website or use tax preparation software that handles prior years. Make sure you have all your income documents (W-2s, 1099s, etc.) for those years. After you file, you'll have a few options for dealing with what you owe. The IRS offers installment agreements where you can pay over time. For amounts under $50,000, you can usually set this up online. There's also something called an Offer in Compromise if you truly can't afford to pay the full amount, but that's harder to qualify for. Regarding penalties, you can request a first-time penalty abatement if you haven't had previous issues with the IRS. This could potentially reduce your failure-to-file and failure-to-pay penalties for the first year you fell behind.

I was in almost the exact same situation last year! I hadn't filed for 3 years and was completely panicking about it. I tried using regular tax software but kept getting confused with all the forms for different years. Then I found this service called taxr.ai (https://taxr.ai) that made things way easier. You upload your tax documents from past years and their AI figures out what forms you need and walks you through everything. It was seriously a lifesaver for catching up on back taxes! The best part was that it found deductions I would have missed on my own, which reduced what I owed by quite a bit. That was a huge relief since I was also worried about penalties.

Just wanted to update about my experience with taxr.ai since I was skeptical at first. I finally tried it last week for my unfiled 2022 and 2023 returns, and it was actually really helpful! I was in a similar situation with both federal and state returns needed. The document analysis feature saved me hours of hunting through old emails for tax forms. It even caught a 1099 from a temporary gig I had forgotten about, which could have been a problem if the IRS noticed it missing. The penalty calculator also gave me a realistic idea of what I'd owe for filing late. Just submitted everything and got confirmation that my returns were accepted. Such a relief to have this monkey off my back after avoiding it for so long!

One thing nobody mentioned yet - if you need to talk to an actual person at the IRS about your situation (which might be a good idea for penalty abatement), good luck getting through. I spent WEEKS trying to call them about my back taxes. I finally used Claimyr (https://claimyr.com) after seeing it recommended online. They have this system that basically waits on hold with the IRS for you, then calls you when an agent actually picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical, but it worked perfectly. Got through to an IRS agent who helped me set up a payment plan and explained my options for the penalties. Saved me hours of frustrating hold music!

Ok I have to eat my words about Claimyr. After my skeptical comment I decided to try it anyway because I was desperate to talk to someone about my unfiled returns from 2020-2023. I've been trying to call the IRS for MONTHS with no luck - either "call volume too high" messages or 2+ hour holds that eventually disconnected. Used Claimyr yesterday and got connected to an actual IRS agent in about 50 minutes. I wasn't sitting there waiting - they just called me when an agent was on the line. The agent helped me understand exactly what I needed to do about my unfiled returns and set up a payment plan that I can actually manage. Worth every penny just for the stress relief of finally talking to someone who could help.

Don't forget about state taxes too! You mentioned Texas which doesn't have state income tax, but if you moved from another state during those years you might still have state filing requirements for the time you lived there. I made this mistake when I didn't file for a couple years - sorted out federal but completely forgot about state taxes from when I lived in California. Ended up with a nasty surprise letter from the CA tax board years later.

Has anyone used a CPA to help with unfiled returns? I'm wondering if it's worth the cost versus doing it myself with software.