Romulus, MI asked in Tax Law for Michigan

Q: I have not filed taxes since 1996 i want to but iam scared i do not make a lot of money what should i do?

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2 Lawyer Answers

A: If you fail to file a federal return, the IRS may have filed a substitute return for you. However, this return will not include any additional exemptions or expenses you may be entitled to causing you to have a higher tax liability.

Have you received any notices from the IRS regarding a proposed assessment?

If you do not make much money, and assuming you have a tax liability, there are still ways to become compliant with the IRS:

1) enter into an installment agreement where you make monthly payments

2) apply for an Offer in Compromise, or

3) in some cases if your expenses exceed your income you can elect to be placed in Currently Not Collectible status (which means that the IRS recognizes that you do not have the funds to currently pay your tax liability).

The State of Michigan will also allow you to enter into an installment agreement to pay your State tax debt.

Keep in mind that depending on your circumstances, you may not even have a filing requirement for particular years. Or may even qualify to receive a tax refund.

I would encourage you to contact a tax professional to formulate a game plan to 1) determine what tax years you need to file, 2) get those returns filed, and 3) if necessary, place you into an affordable tax resolution.

A: Consult with a tax attorney, who may advise you file the past 6 years first, and guide you for the other years accordingly. Good luck.

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