I haven't filed taxes in several years. What should I do?

If you have multiple years of unfiled tax returns, here's your step-by-step action plan. First, don't panic. The IRS is generally more interested in bringing you into compliance than punishing you. Steps: (1) Determine which years need filing. The IRS typically requires the last 6 years of returns, though they may ask for more. Check IRS.gov or have a professional pull your transcripts to see which years are outstanding. (2) Gather your records. W-2s and 1099s for each year (request Wage and Income transcripts from the IRS if you don't have them). (3) File the oldest year first and work forward, as each year may affect the next. (4) Claim all deductions and credits you're entitled to, as many unfiled taxpayers are actually owed refunds. (5) You can only claim refunds for returns filed within 3 years of the original due date. (6) Once all returns are filed, address any balance owed through an installment agreement, OIC, or other resolution option. Critical warnings: if the IRS has filed Substitute for Returns (SFRs) on your behalf, they likely don't include deductions and credits, making you appear to owe more than you actually do. Filing your own returns can significantly reduce the balance.