Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!
The first thing that you need to do is to retain a tax attorney. Then have the attorney hire a CPA. That way the workpapers that are used to prepare the missing returns would be covered by attorney-client privilege. Then, have the missing tax returns prepared. That way you will know the total "damages" that you will owe the IRS.
Once you have the returns prepared and filed, your attorney can work out a payment plan with the IRS. He may prepare an "Offer in Compromise" in which you will agree to pay a lower amount, and you will agree to keep current on the current filings and payments.
Don't expect to have the IRS settle for $0.10 on the dollar, like some attorneys on TV would lead you to believe. They may reduce the penalties and interest, and they may also reduce some of the tax due. If you are barely scraping by, as many people are in this economy, the IRS may place you on what they call the "Currently Uncollectible" list. This would mean that the IRS would try to collect what they can, and would not levy your bank accounts. If you were in this status, the IRS would seize your tax refund every year, and if you were unable to pay the balance off after 10 years, more than likely they would end collection efforts.
Good luck with your issue! As I suggested, you should start with a good tax attorney. If you call the Florida Institute of CPAs (www.ficpa.org) they can refer you to a good tax attorney in your area.
I hope this answers your questions! If you have any more, please feel free to ask me! If you have found my answer helpful, please rate me highly! I would appreciate that!
Thanks again! Have a great weekend!