Quick Answer:
If you’re self-employed in Lake Norman, NC and haven’t filed taxes for one or more years, you’ll need to gather your income records, identify deductible expenses, and submit accurate returns to both the IRS and NCDOR. Acting quickly reduces penalties and helps you avoid enforced collection actions like garnishments or liens.

Why Self-Employed Tax Filings Are Different

Unlike W-2 employees, self-employed individuals must report all income, track expenses, and pay both income tax and self-employment tax. Missing a year means you may owe additional penalties and interest — and if the IRS or NCDOR files a “substitute for return” on your behalf, it won’t include your deductions, making the balance higher.

Steps to File Back Taxes if You’re Self-Employed

1. Gather All Income Records
Include 1099-NECs, bank statements, PayPal reports, and any other proof of earnings.

2. Identify Deductible Business Expenses
Common deductions include:

  • Home office costs

  • Vehicle mileage or expenses

  • Equipment and supplies

  • Internet, phone, and utilities related to business use

3. Prepare and File Each Missing Year
File the oldest year first to avoid processing delays.

4. Pay or Resolve Any Balances Due
If you can’t pay in full, apply for an installment agreement or other resolution option.

5. Plan Ahead to Avoid Future Problems
Implement a bookkeeping system and make quarterly estimated tax payments going forward.

How Polaris Tax & Accounting Can Help

  • We reconstruct your records if you’ve lost receipts or statements.

  • We maximize your deductions to reduce your tax liability.

  • We negotiate directly with the IRS and NCDOR if you owe back taxes.

  • We set up a bookkeeping system so you never fall behind again.

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Don’t let unfiled self-employment taxes spiral into a bigger problem. Contact Polaris Tax & Accounting today to get your back taxes filed accurately and keep your business in good standing.