10 Year non-filer needs help

[Nikki]

A new reader of CtC asks the LoserHeads for advice. Although there's only one entry in this thread to date, it should be fun to watch:

I recently read CtC and am ready to do the right thing.
I have not filed since 1999
I have received no communications from the IRS asking to pay or file.


After reading the book I submitted 4506's for all the years in question and they pretty much match my records.

I know I need to file right away to avoid a (worst case) felony non-filing. If I filed the traditional way each year would average about $1400 due plus penalties and interest.

So, any suggestions on how to proceed with my CtC educated filings?

Should I start filing with the oldest year and work forward...start with '07 and work backward...file all at once...etc.

Someone mentioned I should only be concerned with the last 3 years.

Any general guidance would be greatly appreciated.

Dear wpeacock:

Before you take any action, you should do a little simple arithmetic. You mentioned an average of $1,400 per year plus interest and penalties. You need to compare that number with $1,400 per year plus interest and penalties plus $5,000 (per year) frivolous filing penalties.

Since you've become "CtC educated" and are reading all the success stories on the LoserHead forum, are you willing to risk an additional $50,000 in penalties if you happen to miss one step in Pete's process or misspell one critical word in one of your fililngs?

[.]

I just love a good story about some moron jumping out of a $30K frying pan into an $80K fire. Especially when the odds of it happening are virtually 100%.

[Judge Roy Bean]

I have a suggestion - find an enrolled agent and pay him or her the difference between what you owe and what you will owe in penalties for frivolous filings and ongoing actions.

Maybe, just maybe you can then avoid the criminal charges. No guarantees, though as we've also seen recently reported where a "compliance strategy" didn't prevent the indictment.

[Number Six]

It shouldn't be that hard to locate this deadbeat. An RO calls him, and says, "We need to get you into legal compliance--if you file voluntarily, we will wave the criminal penalties, etc.. If you fight us, this is likely what will happen--a, b, and c."

[Quixote]

Harley, the only losthead to reply, has provided two mutually exclusive solutions. First, he said follow the law, which can only reasonably mean "file all the delinquent returns and pay the tax due as soon as possible". Then in a follow-up response, Harley suggests that wpeacock do nothing at all because IRS has not contacted him.

If he has a $1,400 liability on each year, but has not been contacted by IRS, wpeacock is almost certainly self employed and a sizeable chunk of that $1,400 is self employment tax. By failing to file returns wpeacock has ensured that his earnings record at SSA will have gaps. If he's young enough, that might not matter. But if he's close to retirement age, he has screwed himself over. Nothing he does now will repair the 5 year gap from 2000 to 2004.