Home / Years behind is a process, not a verdict.
Back taxesYears behind is a process, not a verdict.
Unfiled returns are more common than you think, and they have a route out that starts with finding out what the IRS actually has on you.
Remote, nationwide. In English or Español.
Filing and paying are two different problems, and the penalty for not filing is far steeper than the penalty for not paying.
So the order is always the same: pull the transcripts, file the missing years, then deal with the balance. Doing it the other way round means negotiating over a number nobody has verified.
Why transcripts come first
Your IRS account transcripts show which years are actually missing, what income was reported to the IRS about you, and whether the IRS has already filed a substitute return on your behalf. People are often wrong about how many years they owe, in both directions.
Substitute returns matter most. When the IRS files for you, it uses the income reported by third parties and gives you no deductions you did not claim, often with the least favourable filing status. The balance that results is usually higher than reality, sometimes much higher, and filing a proper return for that year is what corrects it.
The three-year refund window
If an unfiled year would have produced a refund, that refund is generally only claimable within three years of the original due date. After that it is gone, even though the return can still be filed.
This is the strongest argument against waiting. People who assume they owe sometimes find that older years were refunds they have now lost, and every month of delay can push another year past the line.
Then the balance
Once the returns are filed, what remains is a collection question rather than a filing one. The realistic options are an instalment agreement sized to what you can pay, currently-not-collectible status if you genuinely cannot pay anything now, or an Offer in Compromise if your finances support one. Penalty relief is worth asking for in most cases and is granted more often than people expect.
We will not tell you which of these applies before reading the transcripts. IRS help covers the collection side in more detail.
If a letter has already arrived
Bring it to the call, and note the date on it. Some IRS notices start a clock measured in days, particularly a final notice of intent to levy. Those are the ones to deal with this week rather than this month.
Back taxes questions.
How many years back do I have to file?
The IRS generally looks for the last six years to consider you current, though the facts can change that. Filing further back can still be worth it in specific situations. We pull your transcripts first so the answer is based on your account rather than a rule of thumb.
Can I still get a refund from an old year?
Usually only within three years of the original due date. Past that the refund is generally lost even though the return can still be filed. This is the main reason not to wait: unfiled years that were owed refunds quietly expire.
The IRS filed a return for me. Is that the final number?
No, and it is almost always too high. A substitute return gives you no deductions you did not claim and often the worst filing status. Filing a proper return for that year usually reduces the balance, sometimes substantially.
Will I go to jail?
Failing to file is not the same as tax fraud, and the overwhelming majority of unfiled-return cases are resolved with returns, a payment arrangement and penalties. What genuinely changes the picture is ignoring the IRS after it has contacted you. Coming forward voluntarily is the better position, and it is the one we are trying to put you in.
What if I cannot pay what the returns show?
Filing and paying are separate problems, and filing comes first because penalties for not filing are much steeper than penalties for not paying. Once the returns are in, the options are an instalment agreement, currently-not-collectible status, or an Offer in Compromise if your finances genuinely support one.
I do not have my old records.
Most of it is recoverable. Transcripts show what was reported to the IRS about you: W-2s, 1099s, mortgage interest. That gets us most of the way for most people, and the gaps are usually expenses we can reconstruct from bank records.
Find out what you actually owe.
- Fifteen minutes, free
- We start with your transcripts
- No promises about the outcome