Question 1

How do I file unfiled taxes from prior years?

Accepted Answer

To file back taxes, first gather all income statements (W-2s, 1099s) for the missing tax years. If you don't have them, you can request a 'Wage and Income Transcript' from the IRS. Once transcripts are secured, prepare and file the returns starting with the oldest year. Filing prior year taxes allows you to claim refunds (if within the 3-year deadline), stop late-filing penalty accruals, and prevent the IRS from filing a Substitute for Return (SFR) on your behalf.

Question 2

What are the penalties for failing to file FBAR or Form 5472?

Accepted Answer

The penalties for compliance failures on foreign accounts and entities are severe. Failure to timely file Form 5472 (required for foreign-owned US LLCs) triggers a flat $25,000 penalty per year, plus additional monthly fines if unaddressed. Failure to file an FBAR (FinCEN Form 114) for foreign accounts exceeding $10,000 in aggregate carries a non-willful penalty of up to $10,000 per violation, while willful violations can exceed $100,000 or 50% of the account balance.

Question 3

Can I settle my IRS tax debt for less than I owe?

Accepted Answer

Yes, via the IRS 'Offer in Compromise' (OIC) program. The IRS will settle tax liabilities for a lower amount if you can prove you cannot pay the full balance. The IRS analyzes your 'Reasonable Collection Potential' based on your assets, equity, current income, and necessary monthly living expenses. Enrolled Agents conduct pre-qualification reviews to ensure your financial footprint aligns with IRS eligibility before submission.

Question 4

How do I request an IRS penalty refund (Penalty Abatement)?

Accepted Answer

You can request penalty relief using two primary paths. The 'First-Time Abate' (FTA) waiver is an administrative waiver available if you have a clean compliance record for the preceding three tax years. Alternatively, you can apply under 'Reasonable Cause' if you can prove that health issues, natural disasters, or reliance on incorrect advice prevented you from filing or paying on time.

Question 5

Do I need representation for an IRS tax audit?

Accepted Answer

While not legally mandatory, having professional representation (such as an IRS Enrolled Agent or CPA) during an audit is highly recommended. Representatives act as a shield, dealing directly with the IRS auditor, answering technical accounting questions, and preventing you from inadvertently disclosing unrelated financial details that could expand the audit's scope. We handle the presentation of books and audit defense.

Tax Filing Resources & Guides

Interactive Document Checklists

Individual Taxpayer Checklist

Government Photo ID & SSN/ITIN

Income Statements (W-2, 1099-NEC/MISC)

Interest & Investment Statements (1099-INT/DIV/B)

Mortgage & Property Tax Records (Form 1098)

Charitable Donation Receipts

Health Insurance Statements (Form 1095-A/B/C)

Downloadable Guides & Templates

2026 Tax Preparation Checklist

Small Business Tax Deductions Guide

S-Corp vs LLC: Tax Savings Guide

Business Expense Tracker

Mileage Log Template

Tax Resolution & Filing Guides

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