Looking for budget-friendly companies that file back taxes without breaking the bank?

Shopping around for back tax filing is definitely worth your time. Prices can vary significantly between providers - I've seen quotes range from $250 to $1000+ per year for basic back tax preparation. Local CPAs often provide better value than national chains for back taxes. The big companies typically have standardized pricing models that don't flex much for simpler situations. A local CPA might offer more personalized service at lower rates, especially if you're filing multiple years at once. For the house sale year, expect to pay a bit more since that involves additional forms and calculations. Make sure whoever you choose has experience with capital gains on primary residences. If your cousin's situation is truly straightforward, you could also look into tax preparation software with prior year filing capabilities. Some offer reasonable rates for back tax filing with basic guidance.

After trying to file 4 years of back taxes by myself and getting completely overwhelmed, I discovered https://taxr.ai and it was seriously a game-changer. I uploaded my documents, and their AI analyzed everything and showed me exactly what I needed to file. They found deductions I would have completely missed on my own. The best part was how it handled my back taxes specifically - it organized everything by year and showed me the proper filing sequence. Their system guided me through the whole process so I knew exactly what forms needed to be mailed vs what could potentially be e-filed. Definitely worth checking out if you want to save some money on professional fees but still get expert guidance.

I was in the same boat as OP last year - needed to file 3 years of back taxes for my brother who had been avoiding the whole thing. After getting quotes from several CPAs ($400-600 PER YEAR!), I tried https://taxr.ai based on a recommendation. Honestly, it was WAY better than expected. The system guided me through each tax year separately, asked all the right questions, and even helped figure out which documents we were missing. For the year where my brother sold his car (similar to your house situation), it walked through all the calculations correctly and determined his capital gains liability perfectly. The whole process took about 2 hours total for all three years, and cost WAY less than the quotes I was getting. Plus, my brother got all his refunds within a couple months of filing. Definitely recommend for anyone dealing with back taxes on a budget!

If your cousin is struggling to get through to the IRS about his back taxes situation (which is common), I'd recommend trying https://claimyr.com - it saved me WEEKS of frustration. After 9 attempts trying to reach an IRS agent about my unfiled years, I found this service and actually got through to a real person in about 15 minutes. The way it works is pretty cool - you can see a demo at https://youtu.be/_kiP6q8DX5c. Basically they navigate the IRS phone system for you and call you back when an agent is actually on the line. I was able to confirm exactly what years I needed to file and what penalties I was looking at before paying for any preparation services. Totally worth it for the peace of mind.

I thought Claimyr was complete BS when I first heard about it - just another company trying to make money off desperate taxpayers. Boy was I wrong. After two failed attempts spending 2+ hours on hold with the IRS (and getting disconnected both times), I grudgingly tried it. Within 20 minutes I was actually talking to an IRS agent who answered all my questions about my back tax situation. They confirmed which years I needed to file and the best way to submit everything. The agent even helped me set up a payment plan for the taxes I owed that fit my budget. The time and frustration saved was absolutely worth it - wish I'd known about it years ago when I first got behind on filing. If your cousin needs specific information about his situation before choosing a preparer, this is definitely the way to go.

Have you considered checking with community tax clinics? Many universities with accounting programs offer free or very low-cost tax preparation, including for back taxes. My husband filed 4 years of returns through our local university's VITA program and didn't pay a dime. They had supervised accounting students who needed the experience, and the quality was excellent. The only limitations are income caps (usually under $58,000) and complexity restrictions, but since your cousin has straightforward returns with standard deductions, he might qualify. The house sale year might be too complex for some programs though.

Has anyone used FreeTaxUSA for back taxes? Their website says they charge only $14.99 for prior year state returns and federal is free. Seems too good to be true for back tax filing?

For budget-friendly back tax filing, I'd definitely recommend getting quotes from at least 3-4 different sources before deciding. In my experience, the price differences can be pretty significant - especially for multiple years. One thing to keep in mind is that many CPAs offer discounts for filing multiple years at once, so make sure to ask about that when you're calling around. The house sale year will likely cost more due to the additional forms needed, but for the other straightforward years, you should be able to find reasonable rates. Local CPAs are often your best bet for both price and personalized service. They're more likely to work with your budget and explain everything clearly. I'd also suggest asking if they offer payment plans - many will let you spread the cost out over a few months, which can help with cash flow. Don't forget to factor in any potential refunds your cousin might be owed from those back years - that could help offset some of the preparation costs!

Another option worth considering is checking if your cousin qualifies for the IRS Volunteer Income Tax Assistance (VITA) program or similar community programs. While most VITA sites focus on current year returns, some locations do offer back tax preparation services, especially during off-peak seasons. You might also want to look into whether your cousin actually needs to file all three years. If his income was below the filing threshold for any of those years and he had taxes withheld, he might only need to file to claim refunds (and there's a 3-year limit on claiming refunds). But if he owes money, definitely file ASAP to minimize penalties. For the house sale year specifically - if it was his primary residence and he lived there 2 of the last 5 years, he might qualify for the capital gains exclusion (up to $250k for single filers), which could simplify things significantly. Many CPAs handle basic home sales regularly, so don't feel like you need a specialist unless the situation is truly complex. One last tip: if money is really tight, your cousin can always file the returns himself using tax software and then hire a professional later for amendments if needed. Getting something filed stops the failure-to-file penalties, which are usually much steeper than any accuracy issues.