Did you know that the IRS will prepare returns for you if you fail to file your tax returns and employers report income to the IRS under your tax identification number? Obviously, those returns, commonly known as "Substitute Returns" do not give taxpayers the full benefit of all deductions to which they would be entitled if they simply filed their tax returns. Don't make the mistake of putting your head in the sand and failing to file a tax return because if you do, chances are the IRS will file one for you and it will not be to your benefit.

If the IRS has prepared subsitute returns on your behalf, you may still file your own legitimate returns, and that simple step has saved many taxpayers thousands of dollars. The first step to digging out of a tax liability is to make sure you get those returns filed, even if you don't have the money to pay the balance owed. The IRS has mechanisms in place to deal with the balance, but you need to file those returns!