Check out some similar questions!

shetland123 · Dec 25, 2011, 10:26 PM

Hi,
I have not filed a tax return in 2009,2010 and have yet to file for 2012. I am self employed as a home inspector and have done a poor job of keeping any real books or records. I have a company name that is registered with the state of Colorado. More often than not the checks I receive are made directly to my personal account, cash is given about 10% of the time which goes into my personal account, and the remainder I have received written to my business account. I have started to do very well over the last year and a half and have probably made close to 100k the last year. I am very scared as I'm trying to get on track and do the right thing but not sure who to talk to or where to begin?

ScottGem · Dec 25, 2011, 10:43 PM

Begin with a CPA who can go over your books and determine what you owe. I would hire someone who negotiates with the IRS so you can negotiate a settlement.

But if you continue not to file, it will be caught and the penalties, which could include jail for tax evasion, will be greater.

Fr_Chuck · Dec 25, 2011, 11:03 PM

Yes a good CPA should be able to go over your personal and business checking accounts, make some educated estimates at earnings ( or losses) for prior years.

But you do need to file.

AtlantaTaxExpert · Dec 26, 2011, 08:32 AM

A CPA IS an option, but an experienced tax professional, especially an enrolled agent, can do the same job for a LOT less in terms of fees.

MukatA · Dec 27, 2011, 02:34 AM

You must file all the required tax returns and pay the tax due with interest and penalty. Earlier you do, better it is.
You can not negotiate a settlement with IRS. You can request only for the waiver of penalty, if you have a good reason for filing late. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor