What's the best thing to do if you haven't filed your federal tax returns for a few years?

If you haven't filed the tax returns, the debt is NOT dis chargeable in bankruptcy. The best thing to do is file the returns, and determine what you owe the IRS, and then have someone help you with negotiating a reasonable repayment plan with the IRS. If you do nothing, the penalties and interest will continue to accrue at a high rate and will "haunt" you forever. It is better to find out what is owed, and make a plan to repay. Remember that the IRS is one creditor that can even take a portion of someone's social security or other public benefit.

The best thing to do is go ahead and file and try to work out a payment plan for the taxes due.

Best advice: File all the returns now. Second best: File all the returns subsequent to 2007 now. Filing for 2008-2011 will have no effect on 2007. Note: If you don't file soon, you may find that you are forfeiting refunds completely, and not even getting credit for them toward your 2007 tax liability. That may have already happened for 2008.

File the returns. The IRS has an informal policy of not prosecuting people for tax crimes if they file returns before the IRS starts a criminal investigation. Filing the returns does two other helpful things: 1) it starts the clock ticking on the statute of limitations on IRS collections and the ability to discharge taxes in bankruptcy and 2) it also allows you to file an offer in compromise (to pay less than is owed if your assets and excess income are worth less than the tax liability) or installment agreement (to allow you to pay over time).

The best thing to do is to file the past due returns. Was your W4 corrected for years after 2007? If so, and if any refunds would be owed to you for recent tax years, those refunds could be applied to your balance owed for 2007. The I.R.S. will not attempt to force you to pay back whatever is owed all at once. They would certainly prefer that, but there are many options available for resolving federal tax debts with the I.R.S., ranging from installment agreements to offers in compromise. You may wish to speak with an accountant and/or tax attorney to determine the available options for resolution of your tax debt, as these options are contingent upon your particular circumstances.

See an attorney and it might be possible to make an offer in compromise to to the IRS. Cannot give more advise without details but will guarantee it will not get better id you continue ignoring the issue.

The best thing to do is to file as soon as possible. If you owe taxes for any of these years, interest and penalties continue to add up until you file and then pay in full. If you are due a refund for any of these years, then if you file more than 3 years late, you lose your refund.