Unfiled tax returns: how to catch up

• Six years. The IRS says its delinquency procedures are normally enforced for a six-year period. Most catch-up plans start there.
• Refunds expire. To claim a refund of withholding or estimated taxes, you must file within 3 years of the return due date.
• Substitute for return. If you don't file, the IRS may prepare a return for you. It might not include deductions and credits you're entitled to. If the IRS proposes a tax, you'll receive a notice of deficiency giving you 90 days to file your own return or petition the Tax Court.
• File even if you can't pay. The IRS says to file all returns that are due, regardless of whether you can pay in full.

1. Get your transcripts. Your IRS Individual Online Account shows wage and income transcripts and account transcripts. These show which years are missing and what income the IRS has on file.
2. Read any notices. Keep every IRS and state letter. They show deadlines and whether a substitute return was filed.
3. Gather records. Bank statements, 1099s, W-2s, receipts and business books for each year. Missing records can often be rebuilt from bank and card statements.
4. Don't forget the states. If you had state filing requirements, those returns are usually missing too.

Business filings can fall behind along with personal ones. That includes quarterly payroll returns (Form 941), S corporation returns (Form 1120-S), partnership returns (Form 1065) and state filings. Unpaid payroll taxes deserve early attention because the withheld portion can become a personal liability for the people responsible for paying it. See trust fund recovery penalty. If the books are behind as well, start with catch-up bookkeeping.

Best for: individuals, self-employed people and small business owners with one or more years of missing federal or state returns.

1. On a free 30-minute call, we talk through which years and returns may be missing and any notices you've received.
2. We review your IRS transcripts with you and agree on which years to file.
3. You send records. We rebuild what's missing from bank statements and transcripts.
4. We prepare the returns for your review and file them.
5. If there's a balance, we review payment options with you: an IRS payment plan, an offer in compromise where it may fit, or other IRS tax resolution steps.

We can't promise an outcome with the IRS. We can give you a clear picture of where you stand. Fees are transparent and fair, quoted upfront, in writing.