Unfiled Tax Returns? Here’s How Far Back the IRS Wants You to File

Falling behind on filing tax returns is a common issue that affects millions of taxpayers. Whether it’s due to life events, financial struggles, or simply feeling overwhelmed, unfiled returns can quickly lead to stress and anxiety. The IRS, however, has stepped up its enforcement efforts in recent years, particularly targeting high-income individuals with unfiled returns, thanks to increased funding from the Inflation Reduction Act of 2022.

If you’ve fallen behind on filing your taxes for several years, you’re probably wondering, “How far back do I need to file to stay compliant?” Understanding the IRS’s rules and following the right steps can help you get back on track, resolve your tax issues, and avoid the penalties that come with noncompliance.

IRS Policy on Filing Delinquent Returns: The Six-Year Rule

The IRS generally requires taxpayers to file the last six years of unfiled tax returns to meet compliance requirements. This is known as the six-year rule, and it strikes a balance between practicality and ensuring taxpayers fulfill their obligations.

If you’re uncertain which tax years you need to file, a tax professional can help you retrieve your IRS account transcripts, which provide valuable information, including:

• Unfiled tax years: To identify the returns you’ve missed.
• Reported income: To see income reported by employers, banks, or other third parties.
• Substitute for Return (SFR): To determine if the IRS has already filed an SFR on your behalf.

Filing accurate returns for the last six years can satisfy compliance requirements and possibly reduce your tax liability by including deductions or credits the IRS missed in an SFR.

Final Thoughts

Dealing with unfiled tax returns can be overwhelming, but you don’t have to face it alone. At the Law Office of Steven N. Klitzner, we help taxpayers navigate IRS rules, resolve unfiled returns, and address unpaid taxes. Our team specializes in creating tailored solutions to help you achieve compliance and avoid enforcement actions like wage garnishments or bank levies.

Don’t wait for the IRS to take action. Take control of your tax situation today and be more proactive with your IRS compliance. Contact us now for professional assistance with unfiled tax returns and back taxes.