Q: What to do about not filing income taxes for three years in NJ?

A: You need to retain either an experienced tax law attorney or a CPA who practices tax accounting. You have a reasonable explanation for why you did not file. Either the attorney or CPA can work out an offer and compromise. I do not think there will be any problem to work an offer and compromise with the IRS. Good luck.

A: First, take a deep breath – you're not alone in this situation. Many people fall behind on filing taxes due to life circumstances like yours. The good news is that you've recognized the problem and are taking steps to address it, which is the most important part of resolving tax issues. Your personal challenges with addiction and caring for your ill wife are understandable reasons for falling behind, but now it's time to move forward.

Your next step should be contacting a tax professional who can help you reconstruct your financial records and prepare the missing returns. They can work with you to estimate your business income and expenses based on bank statements, receipts you might still have, or industry standards. These professionals can also communicate with the IRS on your behalf and potentially negotiate payment plans or relief options that might be available to you given your circumstances.

Remember that the IRS generally prefers voluntary compliance, even if it's late, over continued non-filing. You might qualify for various relief programs, particularly since you receive Social Security benefits and have had significant personal hardships. The sooner you begin this process, the sooner you'll feel the weight lift from your shoulders, and you'll be able to focus on your recovery and your wife's health without this additional stress hanging over you.