HOW TO FILE THE UNFILED RETURN

1. Figure out which years you have not filed tax returns. If you can't remember, you may have to ask IRS when you write to them.

2. If important documents are missing, you or your tax advisor can write to IRS asking for copies of the ones that they have, such as Forms W-2 or 1099.

3. At the same time, you can also ask for tax forms and tax return instruction booklets for the years you need to file. However, your tax advisor will probably have all this.

4. I do recommend you consult a tax advisor. While you may be able to file the returns yourself, it is important to be very realistic at this step. If there is any possibility that you might fall into a spiral of fear or come up against a brick wall, it will be well worth the money to pay a professional to help you through the process. They will be able to debunk some of your fears and will lay out the reality of the situation. Fear of the unknown is much worse than fear of the known! They will also help you decide what is important and what can be overlooked in the interest of getting the returns done at last.

5. Even if you feel confident enough to prepare the returns yourself, I recommend you consult with a tax advisor to go over the issues and create a "to do" list for each year. This will help you find out what documents you need to locate, too.

6. If you feel it is too hard to deal with all the returns at the same time or if you feel you can't afford to pay someone to do so many returns all at once, honor that feeling!! This is the time to ask the most important question: "If I can only do one return at this time, which one should I do?" The answer will probably be to do this year's return first.

Then, you may want to look at a rough estimate of each year's potential for a refund or a balance due. The (statute of limitation) rules about how long you can wait to claim a refund of taxes that were withheld may become an issue to check out.

7. Then, begin. Take a deep breath and begin. It will feel so good when it is done! Take one at a time. Don't sweat the small stuff. Losing a deduction here and there is a small price to pay for getting clean and for getting out of the fear.

8. Persevere at your own rate. Stay with it. Continue to get returns done, even if it takes some time to do it. Don't worry. IRS will be happy to accept your return. As long as they see some activity in that direction, they won't bug you. If you do receive a notice from IRS, it is important that you, or your advisor, respond to it in some way, right away. Your responsiveness will do a lot toward keeping your situation manageable!

9. IRS has developed a "Nonfiler Program" and has assigned cases to staff workers. Their intent is to help you get the old returns filed in one way or another, and then to help you keep on filing returns. They are not overly concerned about the accuracy of the old returns. They do, however, need to get a return for every year there was taxable income. Having your case assigned to the Nonfiler Program can be very beneficial as the staff person can more quickly retrieve missing documents and give you information that they already have. Have your tax advisor ask IRS if your case can be assigned to a local Nonfiler Program. They should ask for copies of account transcripts or histories for all the years. This is very important, as it may turn out that IRS has already prepared a return FOR YOU! This can complicate matters and you need to know about it.

10. Don't try to connect with your tax advisor about these old returns until AFTER APRIL 15TH!! Once they've had a chance to get over their busy season (and maybe take a vacation), they'll be happy to help you out. Actually, the best time to contact them will be in June or July, or later in October or November.

11. Keep copies of the tax returns and any notices from IRS in a safe place. It is good to keep these things forever! After all, some day when you're not feeling all that good about yourself, you could go dig out that box and gloat over the fact that you got them all done!

12. Celebrate the completion of each return, even if you owe some taxes! You have made a gigantic effort and you should be proud of yourself! Also, make a note of the 3-year anniversary date of the filing of each return. Plan to celebrate on these days, too! Make a list now of free or low-cost activities you can do to celebrate, such as burning the instruction booklet and all the extra forms for that year in a safe, but meaningful ritual, or calling a dear friend and telling them all about it.