Got a call from someone who hasn’t filed in 4 years and wants to “get current ASAP

The Urgency of Filing Tax Returns: A Case Study

Recently, I received a call from a client who hasn’t filed their tax returns in four years. Their primary concern was to “get current as soon as possible,” highlighting the stress and urgency that often accompanies such situations.

This scenario is not new to me; in fact, it’s a common occurrence each tax season. Individuals often find themselves in precarious positions, neglecting their tax obligations for various reasons. The consequences of delaying such filings can be severe, ranging from penalties to complications in securing loans or even receiving government benefits.

For those in similar circumstances as my caller, it’s essential to approach the situation with a proactive mindset. Here are a few strategies to consider when you find yourself behind on your tax filings:

1. Assess Your Situation: Gather all necessary documents, such as W-2s, 1099s, and any receipts for deductions. Understanding what you owe is the first step toward resolving the issue.

2. Seek Professional Help: Often, enlisting the assistance of a tax professional can provide clarity and guidance. They can help navigate the complexities of your specific situation and represent your interests with tax authorities.

3. Explore Options: Depending on your circumstances, you may be eligible for an installment plan or other options to ease the burden of back taxes.

4. Take Action: Delaying further only exacerbates the problem. The sooner you file, the more manageable the situation becomes, and you can begin to move forward.

Every year brings similar calls, underscoring the importance of staying current with tax obligations. If you find yourself in a similar position, remember that it’s never too late to address the issue and work toward compliance. Taking the first step may feel daunting, but the peace of mind that comes with being “current” is well worth the effort.