Back Taxes,
resolved the right way.
Unfiled tax returns and back taxes create compounding problems — penalties, interest, and IRS collection action. Our AI Legal Nerds help you get compliant, minimize what you owe, and resolve your back tax situation permanently.
Why Back Taxes Get Worse Over Time
Every day you wait, your back tax situation gets more expensive and more difficult to resolve. Here is what compounds over time.
Failure to File Penalty
5% of unpaid taxes per month — up to 25% of your total tax bill. This penalty alone can add thousands to what you owe within months of a missed deadline.
Failure to Pay Penalty
0.5% of unpaid taxes per month — up to 25%. When combined with failure to file, penalties can reach 47.5% of your original tax bill plus interest.
Interest Compounds Daily
The IRS charges interest on unpaid taxes AND on penalties. Currently set at the federal short-term rate plus 3% — compounding daily on your entire balance.
The Back Tax Resolution Process
Get compliant first
Before the IRS will consider any resolution, you must file all missing returns. Our AI helps you prepare and file back returns — even for multiple years — as quickly as possible.
Request your IRS transcript
Your IRS wage and income transcripts show exactly what income the IRS has on record for each year. This ensures your returns are accurate and match IRS records.
Evaluate relief options
Once compliant, our AI analyzes your full situation — income, assets, expenses — and identifies which IRS resolution programs you qualify for and which gives you the best outcome.
Implement your resolution
Whether it's an installment agreement, Offer in Compromise, or penalty abatement — our AI guides you through every form and every step of implementing your resolution.
Voluntary vs IRS-Initiated Resolution
You Come Forward First
- ✓Lower penalties — the IRS rewards voluntary compliance
- ✓More resolution options available to you
- ✓You control the narrative and the timeline
- ✓Reduced risk of criminal prosecution for tax evasion
- ✓Better negotiating position for payment terms
IRS Comes to You First
- ✗Maximum penalties automatically applied
- ✗The IRS files a Substitute for Return — often unfavorable to you
- ✗Collection action can begin immediately
- ✗Fewer resolution options and less flexibility
- ✗Higher risk of liens, levies, and criminal referral
The sooner you act, the less you owe
Every day of delay adds penalties and interest. Get expert AI guidance and start resolving your back taxes today.