Delinquent/Late-Filed Returns

Taxpayers who want to solve their tax problems must be update on their tax returns.

If a taxpayer has forgotten to file one or more tax returns, or have otherwise failed to file, whether they were aware of it or not, the first step to making an agreement with the IRS to get out of trouble is to get current with filing tax returns.

This is generally a necessary prerequisite to entering into an installment agreement or offer in compromise or even getting taxes discharged in bankruptcy (contrary to a common misconception, even among lawyers and accountants, in some circumstances, tax debts can be discharged in bankruptcy).

Like one after another villains in James Bond movies have said to the super-spy, “No deals, Mr. Bond,” the IRS generally takes the same position with taxpayers who have unfiled tax returns: “No deals, Mr. Taxpayer.”