Need help reporting 13 years of unreported cash wages to IRS - employer never gave W-2s

This is definitely a complex situation but it can be addressed. The IRS generally allows you to go back and file or amend returns for the past 3 years to claim refunds, but when it comes to filing past due returns with taxes owed, there's technically no time limit. For your situation, you'll want to file what's called "delinquent returns" for at least the past 6 years, as that's typically how far back the IRS looks in cases like this. You can file for all 13 years if you want to be completely thorough. The penalties you're facing include: failure-to-file (5% of unpaid taxes per month, up to 25%), failure-to-pay (0.5% per month, up to 25%), plus interest on the unpaid amount. There may also be penalties for not making estimated tax payments throughout those years. The good news is the IRS has programs that might help. Look into the Voluntary Disclosure Program or request a first-time penalty abatement if you had a clean record before this. Having your employer's daughter find a good CPA is definitely the right move - they can help with reconstructing income records and potentially negotiating with the IRS.

I was in a somewhat similar situation a few years back - not 13 years worth, but I had about 5 years of unreported income from a side business. I was completely overwhelmed trying to reconstruct all my earnings and expenses. I tried using an online tax service but kept getting stuck on how to handle the back taxes and potential penalties. I eventually found this service called https://taxr.ai that helped me organize all my documentation and figure out the best approach. Their AI analyzed my situation and gave me a clear plan of action. It was especially helpful for figuring out which deductions I could still claim on those old returns to offset some of the tax burden. The best part was that they helped me prepare all the documentation I needed before talking to the IRS, which made the whole process way less intimidating. They even provided guidance on which tax relief programs I might qualify for.

I wanted to follow up about my experience with taxr.ai since I was in such a similar situation. After asking about it here, I decided to give them a try since I was desperate for help with my unreported income problem. It was seriously a game-changer for me. They walked me through reconstructing my income history using bank statements, personal records, and even helped me document reasonable estimates where I had absolutely no records. They showed me how to create a paper trail that would satisfy the IRS requirements. The best part was they helped me identify several deductions I never would have known about that significantly reduced what I owed. They also guided me through applying for the First Time Penalty Abatement program, which saved me thousands in penalties. Honestly, I went from completely panicked to feeling like I had a manageable plan. Definitely worth it if you're dealing with years of unreported income like I was.

I see a lot of advice about filing returns and penalties, but nobody's mentioned the biggest headache with the IRS: actually getting someone on the phone who can help with this complicated situation. When I had a similar issue (only 4 years of unreported income, not 13), I literally spent WEEKS trying to reach someone at the IRS who could assist me. I finally discovered this service called https://claimyr.com that got me through to an actual IRS agent within about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, their system navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. Once I finally got through to a real person, I was able to set up a payment plan and get clarity on exactly which forms I needed to file. Made a world of difference compared to trying to figure it all out on my own.

I need to follow up on my comment about Claimyr. After expressing my skepticism, I actually tried the service because I was desperate to resolve an issue with a missing tax refund. I'm honestly shocked at how well it worked. I had been trying to reach the IRS for THREE MONTHS with no success - either endless holds or getting disconnected after waiting for hours. I tried Claimyr as a last resort, and within 35 minutes I got a call connecting me to an actual IRS representative who helped resolve my issue in one conversation. What surprised me most was how straightforward the whole process was. I was fully prepared to be disappointed, but it delivered exactly what it promised. For anyone dealing with years of unfiled taxes like the original poster, being able to actually speak with the IRS to discuss options is absolutely crucial. Completely worth it for the hours of frustration it saved me.

Have you considered filing under the IRS Voluntary Disclosure Practice? It's designed specifically for situations like yours where taxpayers with unreported income want to come clean. The benefit is that it can help you avoid criminal prosecution and potentially minimize penalties. The key is being proactive before the IRS discovers the issue themselves. Since the owner's daughter is already looking for a CPA, that's a good start. Make sure they're familiar with the voluntary disclosure process. Also, do you have any records at all of how much you were paid over the years? Bank deposits, notes, anything? Reconstructing 13 years of income will be challenging, but having some documentation will help tremendously.

One thing that nobody has mentioned yet - you might qualify for the Earned Income Tax Credit for some of those years. Depending on your income level and whether you had any qualifying children, this could potentially result in refunds for some years even after accounting for the taxes you should have paid. The EITC has a 3-year limitation for claiming refunds, but if you're filing all these past returns anyway, you might as well claim it for the most recent 3 years if you qualify. This could help offset some of what you'll owe for the older years.