Hi, TrishBee,
I am so sorry to hear that. I have had a recent family death and know how challenging that can be.
You do have options. You can hire a tax resolution expert, but that may be expensive. You can also help yourself. The first step is to get those back taxes filed. You can get the prior year business software here. You don't say what type of entity it is, but if you are a sole proprietor who hasn't made any elections to be taxed as another entity, you may be catching up your personal returns including Schedule C's using personal tax software. Once you get filed, you can work with the IRS to set up a payment plan (if needed). States often have the same options and you can check your state's Department of Revenue site to learn more.
Once you get filed, you may be assessed with penalties for failure to timely file and failure to pay. It's possible you can get some of those penalties abated (see here) for reasonable cause and or possibly make use of the first time penalty abatement option.
You also can speak with the taxpayer advocate service. This quote is from their website:
"The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. We’re here to ensure that every taxpayer is treated fairly and that you know and understand your rights. Our advocates can help if you have tax problems that you can’t resolve on your own."
One of the most important things you can do is to get filed. The failure to file penalty can add up quickly. This page from the IRS gives more information about things the IRS may consider to be reasonable cause:
"Examples of valid reasons for failing to file or pay on time may include:
- Fires, natural disasters or civil disturbances
- Inability to get records
- Death, serious illness or unavoidable absence of the taxpayer or immediate family
- System issues that delayed a timely electronic filing or payment"
States may also have penalty abatement options. Don't hesitate to reach out to them for help.
Again, I am sorry for your loss. Hang in there and don't forget to take care of yourself.
Hope this helps.
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Regards,
Karen
TurboTax Expert
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