Do I need to file tax returns before I can settle my case?

You absolutely need to file all your outstanding tax returns before you can settle a case with the IRS. There’s several reasons for this. The first one is of course, that it is an IRS requirement. However, the second one is that in the event that you would enter into an installment agreement with the IRS, and then you owe additional funds, that installment agreement would be defaulted, and you’d have to start the process all over again in order to set up a new agreement.