Unfiled Tax Returns

If you have unfiled returns, here are some key points to know:

📌 What “Unfiled Returns” Means

• You did not submit your required tax return(s) for one or more years.
• This can apply to income taxes, business taxes, or other required filings.

⚠️ Possible Consequences

• Penalties & Interest: The longer you wait, the more you may owe.
• IRS Substitute for Return (SFR): The IRS may file a return for you using only the income they know about — usually resulting in a higher tax bill.
• Loss of Refunds: Refunds can only be claimed within 3 years of the original due date.
• Collection Actions: Wage garnishment, bank levies, or liens.

✅ Steps to Get Back on Track

• Gather Records
  • W-2s, 1099s, bank statements, and other income documents.
  • You can request IRS wage & income transcripts.
• Determine Which Years to File
  • The IRS generally requires the last 6 years to be filed to be considered compliant, but older years may still be needed in some cases.
• Prepare & File Returns
  • File electronically if possible, or mail paper returns for older years.
• Address Any Balances
  • Pay in full if you can, or request an installment agreement or offer a compromise.
• Seek Professional Help
  • The Spiritual Tax Accounting Firm has been in business since 1979 and has provided “Catch-Up Tax Filings” since 1983.

💡 Tip: The sooner you file, the more options you have to reduce penalties and avoid aggressive IRS action.

📝 Step-by-Step Checklist

1. Identify Missing Years

• Review your personal records for past tax filings.
• Contact the IRS (U.S.) at 800-829-1040 or request an Account Transcript online via the IRS “Get Transcript” tool.
• Make a list of each year you have not filed.

2. Gather Income & Expense Records

• Income: W‑2s, 1099s, K‑1s, bank interest statements, brokerage statements.
• Expenses/Deductions: Receipts, mortgage interest statements, charitable donations, medical expenses.
• If you’re missing documents, request copies from employers, banks, or the IRS.

3. Request IRS Wage & Income Transcripts

• These show all income reported to the IRS under your SSN.
• Use them to ensure you don’t miss any reported income (avoiding IRS mismatch notices).

4. Prepare the Returns

• Use tax software, IRS fillable forms, or a tax professional.
• File all missing years — the IRS generally requires the last 6 years, but older years may be needed if you owe or have compliance issues.
• Double-check for accuracy to avoid audits.

5. File the Returns

• Preferred: E-file if the year is supported by software.
• Older Years: Mail paper returns to the IRS via Certified Mail with Return Receipt for proof.
• Keep copies of everything.

6. Address Any Balances Owed

• If you owe taxes:
  • Pay in full if possible to stop interest/penalties.
  • If not, request:
    • Installment Agreement (monthly payments)
    • Offer a Compromise (settle for less if eligible)
    • Currently Not Collectible (CNC) status (temporary pause on collections)

7. Monitor IRS Notices

• Respond promptly to any IRS letters.
• Keep all correspondence in a dedicated folder.

8. Stay Compliant Going Forward

• File on time every year.
• Adjust withholding or estimated payments to avoid future balances due.

Fill out this quick form and, we’ll get started on your situation right away.