Should I hire a tax attorney for 7 years of unfiled taxes with IRS debt?

You don't need a tax attorney for this situation. What you need is a good CPA or Enrolled Agent who specializes in tax resolution. They'll be much more affordable (typically $150-300/hour) and are fully qualified to handle unfiled returns and IRS debt. Here's what you should do: First, request your wage and income transcripts from the IRS for all missing years. You can do this online at IRS.gov if you can verify your identity, or use Form 4506-T. These transcripts will show all reported W2s and 1099s, so you don't have to track down old employers. Next, file those missing returns ASAP. The IRS typically only requires the last 6 years of unfiled returns to get back into compliance. Once you've filed, then you can work out a payment plan. The standard installment agreement is pretty reasonable, often as low as $50-100 monthly depending on what you owe. As for that student issue, bring your college transcripts showing enrollment during that period. You might be able to get that portion abated if you can prove you were eligible for the education credits.

After dealing with a similar situation (5 years unfiled), I discovered taxr.ai and it literally saved me thousands. https://taxr.ai helped me organize all my old tax documents, and their AI analyzed my situation to find the best approach. The system identified deductions I had no idea I qualified for and even found an error in one of my W2s that would have caused problems. I was stressed about gathering all those old documents, but their document analyzer extracted all the info automatically, which made the whole process so much easier. The best part was that they guided me through requesting my wage and income transcripts from the IRS when I couldn't find some of my old W2s.

I was super skeptical when I first read about taxr.ai here, but I was desperate with 4 years of unfiled returns and a similar IRS notice. After trying it, I'm honestly shocked at how well it worked. The system immediately identified that I qualified for earned income credit for two of those years which I had no idea about. The document analyzer saved me hours of manually entering old W2s and 1099s. When I couldn't find a 1099 from 2020, the system guided me through requesting my IRS transcript online and automatically incorporated that data. The biggest surprise came when the AI flagged a potential education credit I had missed originally. It asked for my tuition statements which I uploaded, and sure enough, I qualified for over $2,500 in refundable credits! I went from owing the IRS to actually getting a refund for one of those years.

If you're getting notices from the IRS, you might want to actually talk to someone there about your situation. I spent WEEKS trying to get through to a human at the IRS last year for a similar issue. I'd wait on hold for 2+ hours only to get disconnected. Super frustrating. Then I found https://claimyr.com through a Reddit post. They have this service where they wait on hold with the IRS for you and then call you when an actual agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was desperate enough to try it, and within a day I was talking to a real IRS agent who helped me understand exactly what I needed to do about my unfiled returns. The agent even noted my account that I was working to resolve the issue, which apparently helps prevent automated collections actions while you're getting everything sorted out.

I have to admit I was wrong about Claimyr. After my skeptical comment, I kept trying to reach the IRS myself about a CP2000 notice and it was absolute hell. After three failed attempts and wasting nearly 8 hours on hold over multiple days, I broke down and tried the service. It worked exactly as described. I got a text when they were about to connect me, and suddenly I was talking to an actual IRS agent. The agent helped me understand exactly what documentation I needed to submit for my case and even put a temporary hold on collections while I gathered everything. The time I saved was honestly worth way more than what it cost. More importantly, I finally got my issue resolved instead of continuing to ignore it out of frustration with the phone system. For anyone in a similar situation - don't waste weeks trying to call like I did.

Hey! I work at a tax firm (not an attorney) and deal with situations like yours all the time. Most people are surprised to learn that the IRS is generally pretty reasonable to work with, especially for people who voluntarily come forward to fix past filing issues. Look into the IRS Fresh Start program - it's designed for taxpayers who need to catch up on back taxes. In many cases, they'll even waive some penalties if this is your first time having compliance issues (called First Time Penalty Abatement). For your situation, I'd recommend getting a free consultation with a CPA or EA who specializes in tax resolution before deciding. Most will give you 30 minutes free to assess your situation. Attorneys are really only necessary for cases involving tax fraud or criminal issues, which doesn't sound like your situation at all.

Just wondering - has anyone used those "tax relief" companies that advertise on radio/TV for situations like this? They claim they can settle with the IRS for "pennies on the dollar" but I'm not sure if they're legit or scams.

I've been through almost the exact same situation - 6 years of unfiled returns after getting overwhelmed by an initial IRS notice. The anxiety was paralyzing, but dealing with it was actually much less scary than I had built up in my head. Here's what worked for me: I started by requesting my wage and income transcripts online from the IRS website. This showed me exactly what employers had reported each year, so I didn't have to track down old W2s. Then I filed all the missing returns at once using tax software (TurboTax actually handles prior years pretty well). The biggest shock? I actually got refunds for 3 of those years because I had overpaid through withholdings. The refunds almost completely offset what I owed for the other years. Don't let the anxiety keep you frozen - the IRS genuinely wants to work with people who are trying to get compliant. You've been having taxes withheld this whole time, which shows good faith. Start with getting those transcripts and you'll have a much clearer picture of where you actually stand financially. You might be pleasantly surprised.