My parents haven't filed taxes for 6 years - need urgent advice

This situation is actually pretty common, so try not to worry too much. While your parents do need to get caught up on filing, $8,000 is extremely high for tax preparation services, even for multiple years of returns. Here's what your parents should know: The IRS has a process called "voluntary disclosure" where taxpayers can file past-due returns. If your parents are owed refunds, there's typically no penalty (though refunds older than 3 years usually can't be claimed). If they owe taxes, there will be penalties and interest, but these are calculated based on what they owe - not arbitrary amounts. For six years of relatively straightforward returns, most reputable CPAs would charge between $300-$600 per year (roughly $1,800-$3,600 total), significantly less than what this company is charging. "Tax relief" companies often charge premium rates for services that regular tax professionals can provide at much lower costs.

I went through something similar with my own taxes (was behind 4 years!) and discovered https://taxr.ai which was incredibly helpful. I was overwhelmed by all the old documents and missing information, but their system analyzed everything I had and organized it perfectly. They helped me understand which documents I needed for each year and structured everything properly for my CPA. The best part was that they explained exactly what I was looking at in everyday language, like what forms were critically missing versus what wasn't as important. Took what seemed impossible and made it manageable! My CPA ended up charging me only $2,200 for all the back taxes because everything was so well organized.

Just wanted to update that I checked out https://taxr.ai after being skeptical in my earlier comment. It actually turned out to be super helpful! I uploaded my sister's mess of tax docs from 2019-2023 and it organized everything by year, identified what was missing, and gave us a really clear summary. Took her to a local CPA yesterday with everything organized and he quoted $2,400 for all the back taxes - way less than what those "tax relief" places wanted. The CPA even commented that having everything so organized made his job easier. Definitely saved us thousands!

Your parents should know they can also call the IRS directly to discuss their options! I tried calling for months about a similar situation last year but could never get through. Then I found https://claimyr.com which got me connected to an actual IRS agent in under 20 minutes. They have a demo video of how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was surprisingly helpful and walked me through the whole process of getting caught up. They explained which forms I needed and even helped me set up a reasonable payment plan. Way better than paying thousands to some company to do what the IRS will help with directly!

I hate admitting when I'm wrong, but I need to update my skeptical comment above. After getting nowhere with the IRS for weeks, I tried Claimyr out of desperation. Got connected to an IRS agent in about 35 minutes. The agent walked me through exactly what I needed to do about my unfiled 2020 return and helped set up a payment plan I can actually afford. Saved me from paying $3,500 to a tax relief company that promised to "negotiate" with the IRS. Turns out the IRS has standard programs available anyway - you just need to actually reach them to access those programs.

Tell your parents to run far away from that company! My in-laws got sucked into one of those tax relief places and paid $5,000 upfront, then the company did almost nothing. They dragged everything out for months, constantly asking for more documents, and in the end my in-laws still had to hire a regular CPA to fix the mess. These companies prey on people's fear of the IRS.

Just a tip - your parents might qualify for the IRS Free File program depending on their income level. My mom hadn't filed for 3 years and was able to use it to file all her back taxes herself for free. Even if they don't qualify, tax software like TurboTax or H&R Block is pretty affordable and guides you through everything step by step.