How the IRS acts here
When you don't file, the IRS can prepare a substitute for return using only the income reported to it — and it generally ignores deductions and credits you'd be entitled to, which is how people accidentally end up with inflated balances. Note also that the assessment clock generally doesn't start until a return is actually filed.
What your options actually are
The work is sequencing it correctly: reconstruct the records, file the back returns accurately, then resolve whatever balance results — through an installment agreement, OIC, CNC, or penalty abatement, depending on your facts. Filing first, in the right order, protects you.
Why representation matters here
Getting the filings and the resolution in the right sequence protects the client — and accurate returns often produce a far better number than the IRS's substitute version. We prepare returns only as part of resolving a case.
This describes how a process works, not a promised result. Outcomes depend on each taxpayer's facts and are not typical or guaranteed.