Legal Question in Tax Law in New York

settlement or payment plan prerequisites

Do I have to be current in all of my Federal Income Tax filings before entering into negotiations with the IRS for a settlement on the amount that I owe? I haven't filed my taxes for 2001, and a few years in the 70's, 80's and 90's. I filed for 2000, late, because it was required for where I live. I owe $10,000 because of penalties and fines for that year alone. I'd like to make some sort of arrangement with the IRS to pay what I owe for that year, but I heard that in order to do so, I had to be ''current'' in my tax filings, meaning I have to file for every year when I worked, which is virtually impossible to do. I am in my 60's now and began collecting social security last year. I don't know what to do.


Asked on 12/07/04, 3:49 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: settlement or payment plan prerequisites

Yes, to enter into any settlement with IRS, you need to be current in all your filings. If you are not sure what remains open, you can contact any IRS office and they can get a transcript of your account, which will indicate any balances open or missing returns. If you are retired and have minimal income, you might not have need to file returns since your retirement. It is also possible that for some of the years which you might have not filed, when you were working, that you might have actually been entitled to refunds, based upon your sources of income and any withholding that might have been taken. You may also find that with so many years involved, their records might not go back to the 60' 70's or 80's, so only current years might need to be filed. If you need assistance, contact me directly.

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Answered on 12/07/04, 4:38 pm


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