Falling behind on your taxes doesn’t mean you’re out of options. Whether you missed one year or several, Polaris Tax & Accounting helps North Carolina taxpayers get back on track—with both the IRS and the NCDOR.

Why Filing Back Taxes Matters

The IRS and the North Carolina Department of Revenue (NCDOR) can pursue aggressive collection tactics if you don’t catch up. That includes:

  • Wage garnishments

  • Bank levies

  • Federal and state tax liens

  • Denied passports (IRS only)

  • Criminal enforcement in rare cases

And perhaps most importantly, you can’t claim refunds for federal returns more than 3 years old. That money is gone forever if you don’t act in time.

Step 1: Gather Your Records

Start by collecting the basics:

  • W-2s and 1099s for each year you missed

  • Business income and expenses (if self-employed)

  • Form 1098 for mortgage interest

  • Prior year tax returns (if available)

  • IRS Wage & Income Transcripts

  • NCDOR Account Summary (if applicable)

Tip: If you’ve lost records, we can pull transcripts from the IRS and guide you through estimated filings when needed.

Step 2: Determine Which Years You Must File

In most cases, you’re only required to file the last six years of federal returns (per IRS Policy Statement 5-133). North Carolina usually aligns with this—but it can vary depending on your income, collections status, or business type.

We’ll evaluate your situation and determine the minimum required filings to achieve compliance.

Step 3: File Federal and NC Returns Simultaneously

For NC residents, it’s critical to file both:

  • Federal (IRS) Forms 1040 or 1120-S

  • NC State Individual or Business Returns

You can’t resolve state issues without federal compliance. At Polaris, we file both returns together and ensure consistency between them—avoiding NCDOR notices for mismatched income.

Step 4: Understand What You Might Owe

Once filed, you’ll receive balances due from:

  • IRS: Tax owed + penalties + interest

  • NCDOR: Tax owed + 10% late penalty + daily interest

At this point, we can evaluate your eligibility for:

  • Installment Agreements

  • Penalty abatement

  • Offer in Compromise (IRS only)

  • Currently Not Collectible (IRS only)

Step 5: Protect Yourself from Collections

If you’re under threat of wage garnishment or bank levy, we can file:

  • IRS Form 911 (Taxpayer Advocate escalation)

  • Collection Due Process appeal

  • Installment agreement request to pause enforcement

At the state level, NCDOR may also pause collections with a pending resolution or Power of Attorney on file.

What If You’re Self-Employed?

Don’t panic. Even if you haven’t issued 1099s or tracked every deduction, we can recreate a reasonable record set to file Schedule C returns and reduce your exposure.

We’ve helped NC freelancers, Uber drivers, landlords, and small business owners in every situation imaginable.

What If You Can’t Pay?

That’s common. Filing back taxes is step one. From there, we’ll explore:

  • Payment plans

  • Penalty relief

  • IRS Fresh Start programs

  • Strategic filing order to reduce balances

Ignoring it only makes it worse.

Related Tax Help Resources:

Ready to Catch Up?

📞 Call Polaris Tax & Accounting at 704-947-3178
✅ No judgment—just practical help
🔐 Experienced with both IRS and NCDOR back filings
🗂️ Licensed Enrolled Agent representation