Back Taxes and Unfiled Tax Returns

The failure-to-file penalty is 5% of the unpaid tax for each month a return is late, up to 25% — ten times the failure-to-pay penalty. Filing stops it from growing. If you are owed a refund, you generally have three years from the original due date to claim it, so old returns can mean money back.

When you don't file, the IRS may prepare a substitute for return using only your W-2s and 1099s — usually with just the standard deduction, no business expenses or credits, and the least favorable filing status. We replace those with accurate returns, which very often lowers the balance substantially.

The IRS generally expects the last six years of returns to be filed before it will agree to a payment plan or settlement. We pull your transcripts, gather what is missing, file the returns, and then negotiate whatever balance is left.