Behind on filing? Start here.
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- Blaga Veleva, EA
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- Past-due returns
If you haven't filed in years, file every return that is due, even if you can't pay. The IRS may otherwise file a substitute return without your deductions, and refunds older than three years are lost. Blaga Veleva, EA, pulls your IRS income records and prepares the missing returns so you can move to a plan.
What should you do this week if you have unfiled returns?
Request your wage and income transcripts. They show every W-2 and 1099 the IRS has for each year. The IRS past-due returns page points to Form 4506-T for this, or to your employer and payers. Blaga can pull them for you under Form 2848. Then gather what the IRS doesn't have: business income and expenses, mortgage interest, childcare, and receipts. If a CP59, CP515 or CP518 arrived, it shows which years they want. Don't wait until every receipt is found. A return built from transcripts and bank statements, with honest records for expenses, is far better than no return.
What happens if you never file?
The IRS may file for you, and it won't be kind. Its substitute return "might not give you credit for deductions and exemptions you may be entitled to receive." Then it sends a notice of deficiency, a CP3219N, with 90 days to file or petition Tax Court. After that it assesses the tax and can move to levies and liens. Repeated nonfiling can bring added penalties or criminal prosecution.
How much does filing late cost?
The failure-to-file penalty is 5% of the unpaid tax for each month or partial month late, up to 25%. If a return is more than 60 days late, the minimum penalty for returns due after 2025 is $525 or 100% of the tax owed, whichever is less, per the IRS failure-to-file page. The penalty doesn't apply if you show reasonable cause. That is one reason to file now, not later.
Could you be owed a refund instead?
Yes, and the clock is running. To claim a refund you must file within 3 years of the return's due date. The same limit applies to credits such as the Earned Income Credit. People who skip filing because they expect to owe are sometimes surprised. Prepare the oldest open refund year first.
How many years back does the IRS want?
The IRS says to file all returns that are due. In practice, the notices you received and your transcripts tell us which years the IRS is pursuing. Blaga confirms that with the IRS before preparing anything, so you don't pay to prepare a year that doesn't need it. Each year is prepared under that year's tax rules, with that year's forms and limits. Blaga keeps a checklist of what each year needs. Self-employed? See our self-employed tax preparation page.
What comes after the returns are filed?
A plan for any balance. Once every return is in, you can apply for an installment agreement, ask for penalty relief, or look at other options. Being fully filed is a requirement for most of them. If your books are a mess, our catch-up bookkeeping service rebuilds them first. If penalties made the balance much bigger, ask about First Time Abate or reasonable cause once the returns are in.
Should you file even if you can't pay?
Yes. The IRS puts it plainly: "File all tax returns that are due, regardless of whether or not you can pay in full." The math backs that up. The failure-to-file penalty is 5% a month, while the failure-to-pay penalty is 0.5% a month. Filing stops the larger one from growing. The unpaid balance can then go into a payment plan.
A client, in their own words
“Blaga Veleva was wonderful. It was such a relief to find her because I had 5 years of tax returns to file and I was concerned about finding someone that would take the time to be very thorough with all of it. I have never been behind like this in the past having always filed every year. I have always used a CPA and they all handed me my return and basically left me to call back if I had any questions. Not only was Blaga very thorough with each return but she told me that we would go through each one to be sure everything was accurate and that nothing was missed. When we made the appointment for me to pick up the returns she spent 4 hours with me going over each return tweeking anything that could be tweaked as we went along. I recommend Tax And Business Solutions to anyone who cares about the accuracy of their returns.”
Questions people ask
Q1I haven't filed taxes in years. What do I do?
Pull your IRS wage and income transcripts, gather your own records, and file every return that is due, even if you can't pay. Then set up a plan for the balance. Blaga Veleva, EA, can handle each step.
Q2Can I still get a refund for an old year?
Only if you file within 3 years of that return's due date. After that, the refund is lost. The same limit applies to credits such as the Earned Income Credit.
Q3Will I go to jail for not filing?
The IRS says repeated nonfiling may bring additional penalties or criminal prosecution. If you are worried about criminal exposure, speak with an attorney first.
Q4How many years back does the IRS want?
The IRS says to file all returns that are due. Your notices and IRS transcripts show which years it is pursuing. Blaga confirms those years before preparing anything.
Q5Who can help with unfiled returns in Houston?
Blaga Veleva, EA, at 5629 FM 1960 West, Suite 221, prepares past-due individual and business returns. Call (281) 785-0460 or upload your notices through the secure portal.