Unfiled Tax Returns
This situation is when you have willfully or neglectfully failed to file your income tax returns. You have to be current on your tax returns in order for the IRS to consider any negotiation you submit. Often it is difficult for a taxpayer to find the documentation (W-2s, 1099s, etc.) to file older returns. Worse yet, the IRS can and will file them for you – without the deductions that you deserve in most cases. This is not their fault. All that they have to go on is the information sent to them from your employer, which is just the income shown. They have no way of seeing why any of the money is not taxable.