If you have missed a year or two in paying income taxes, it’s likely you owe back taxes. Many people are afraid of filing back taxes for fear of serious fines, punishment or even jail time. While the IRS can impose severe penalties on delinquent taxpayers, the truth is if you work with the IRS on paying back taxes and express a willingness to file and make payments, chances are you will qualify for a payment plan that works for your needs.

To start the process of paying back taxes, gather all your financial information for the years that you missed. This would include income documents like a W-2, itemized expenses, receipts and any other financial documents. If you don’t have that information gathered, contact your employer as they are required to keep records of payroll information for many years. If you cannot get these records, you can use a tax document that allows you to approximate your income during the missing years.

A qualified tax preparer or tax company can help you fill out the paperwork on back taxes correctly. While some people who are comfortable with tax documents may be able to figure out the intricacies on their own, most people who owe back taxes consult with a reputable company to process the paperwork. A tax professional can also guide you through any penalties and fees that may be due and also make sure you get maximum deductions possible.

Be sure that you use the tax return documents for the years that you are filing for. You cannot fill out the current year’s tax forms for back taxes. Most documents for previous years can be found online at the IRS website, while professional tax preparers may also have access to them.

If you find that you qualify for a tax refund when you file your back tax return, you must deduct any applicable fees and penalties from it. You must file back taxes within three years, otherwise you are disqualified from any returns.

If you find that you owe taxes after filing the back tax return, look to setting up a payment arrangement plan with the IRS. There are many variations of installation agreements that the IRS can offer you, and it’s an excellent alternative to those who cannot afford the entire back payment at once.