Back Taxes?

This caller and her husband have not filed for their taxes in several years but they are receiving an inheritance.

QUESTION: Lyda is inheriting $280,000 from a trust.  However, Lyda and her husband have not filed taxes for their business for the past six years.  What should they do to clean up this mess?

ANSWER: First, you need to find an Endorsed Local Provider CPA and start working on the process of “coming in out of the cold.”  If you go to the IRS, they will work with you.  If the IRS finds you, they will press criminal charges.  You need to initiate this immediately.  This means you’ll have to reconstruct the past several years – as best as you can – and get current on your taxes.  Since you have the money, you’ll send in the tax returns with a check for the total in back taxes.