Consequences of Not Filing
5% of unpaid taxes per month, up to 25%
Forfeit refunds after 3 years from due date
Liens, levies, and wage garnishment
Willful failure to file can result in criminal charges
The Longer You Wait, The Worse It Gets
Penalties and interest compound monthly. What starts as a small tax amount can quickly become overwhelming. Act now to minimize the damage and get back in compliance.
How to Get Current with Your Filings
Determine Which Returns to File
Identify all years with unfiled returns and prioritize the most recent years first.
- Request tax transcripts from IRS
- Review income records
- Identify years with significant income
- Focus on last 6 years first
Gather Required Documents
Collect all necessary tax documents for each unfiled year.
- W-2s and 1099s from employers/clients
- Bank statements and financial records
- Receipts for deductions
- Prior year tax returns for reference
Prepare and File Returns
Complete and file all missing tax returns, starting with the most recent years.
- Use correct year tax forms
- File electronically when possible
- Include all required schedules
- Keep copies of everything
Address Back Taxes
Deal with any taxes owed from the newly filed returns.
- Calculate total amount owed
- Set up payment plan if needed
- Request penalty abatement
- Consider other relief options
Stay Current Going Forward
Establish systems to ensure you file all future returns on time.
- Set up quarterly reminders
- Organize tax documents throughout year
- Consider professional help
- File extensions if needed
Special Situations
If you're owed refunds, you have 3 years from the original due date to claim them.
- • No penalties for late filing if refund is due
- • Must file within 3 years to claim refund
- • Refunds can offset taxes owed in other years
Don't have all your tax documents? You can still file returns with available information.
- • Request transcripts from IRS
- • Contact employers for duplicate W-2s
- • Estimate income if necessary
- • File amended returns when documents found
Worried about criminal prosecution? Voluntary compliance is viewed favorably by the IRS.
- • Voluntary filing reduces criminal risk
- • Most cases are civil, not criminal
- • Consider attorney consultation
- • Act quickly to show good faith
Why Get Professional Help
- Expertise in tax law and IRS procedures
- Can reconstruct returns with limited documentation
- Maximize deductions and minimize taxes owed
- Handle IRS communication and negotiations
- Set up payment plans and penalty relief
- May miss valuable deductions and credits
- Errors can trigger audits or additional penalties
- Time-consuming and stressful process
- May not know about available relief options
- Could face continued IRS collection actions