Back Taxes — How to Resolve Years of Unpaid Federal Taxes
Back taxes accumulate penalties and interest that can more than double your original balance. The key is stopping the bleeding with a resolution agreement, then addressing the underlying balance through the right method for your situation.
How the IRS Handles This
The IRS assesses tax, adds failure-to-file and failure-to-pay penalties, and charges interest (currently ~8% annually). After multiple notices, the IRS begins enforcement: liens, levies, and garnishments.
DIY Steps to Resolve This
- 1
Get your IRS transcripts to determine your exact balance for each year
- 2
File any missing returns (filing stops the 5%/month failure-to-file penalty)
- 3
Request penalty abatement to reduce the balance
- 4
Choose a resolution: installment agreement, OIC, or CNC based on your ability to pay
Get the Complete DIY Guide for $1.99
The above is an overview. Our full guide includes IRS forms, template letters, phone scripts, and step-by-step procedures — everything you need to resolve this yourself.
Relevant Guides
Too Complex to DIY?
Our tax attorneys handle complex cases when you need professional representation.
Free Consultation