Have you ever missed a tax filing date and thought, “Can I even fix all of this, or is it too late?” If this is the case, remember that you are on the same boat as many are. Falling behind on your taxes is not entirely the biggest offense, but it sure feels nothing less.
What if we told you there’s a way? The IRS typically allows you to file tax returns from the prior six years to regain good standing.
However, let’s be clear: The longer you delay, the more fines and interest accrue, making your situation even more challenging to escape.
It’s time to take charge and deal with things directly.
Check this out too: Unfiled Tax Returns Help
How Many Years Back Can I File Taxes?
In simple terms, you must submit tax returns at least every six years to maintain a good relationship with the IRS (which is also their compliance criterion). The only exception is for filing to get a refund, which can be claimed within three years from the original filing deadline.
However, unfiled returns for owing taxes have no such time constraints. Therefore, the IRS can charge you taxes for every year in which you have failed to file.
| Key Insight: You can file late tax returns even without an extension. If you owe taxes, file as soon as possible to avoid a 5% monthly late-filing penalty, capped at 25%! |
Consequences of Not Filing Taxes on Time
Before we continue reading the blog, it is important to understand the major setbacks of skipping tax returns so that you are better prepared, even if you did not do it on purpose.
Let’s give you a closer look:
Increased scrutiny and audits
Missing filing deadlines might trigger more frequent or intensive audits in the future as the IRS may consider you a higher-risk taxpayer.
Damage to Creditworthiness
While the IRS doesn’t directly report to credit bureaus, unpaid tax debt can lead to liens, which severely affect your credit score and make obtaining loans difficult.
Reduced Social Security Benefits
Failing to report income for certain years can lower your future Social Security benefits (such as retirement, disability, and survivor benefits) since they are calculated based on reported earnings.
Loss of Tax Credits and Deductions
Failing to file within the window may render certain tax credits (such as the Earned Income Tax Credit) to be lost permanently as well as reduced in possible refunds or offsets.
Asset Seizure
Apart from imposing penalties, the IRS can also levy bank accounts or even real properties (as much as personal or business assets) to recover unpaid taxes.
However, it all boils down to your situation. What we mean is, failing to address your circumstances could leave you constantly questioning how many years back can I file taxes and facing the consequences of unresolved filings.
Penalties for Not Filing Taxes on Time
Many people ask, “Can you file taxes from previous years?” The good news is yes, it’s a great way to address unpaid tax obligations. However, the downside is the penalties that accrue if you don’t act quickly.
Failure to File Penalty
- Minimum penalty: Will be less than $435 or 100% of delinquent taxes if filed more than 60 days late.
- Monthly penalty: 5% of unpaid taxes per month, touching a maximum of 25%.
- When It Applies: It begins to accumulate the day after the due date.
Failure-to-Pay Penalty
- Minimum Penalty: Not necessary for this category.
- Monthly penalty: 0.5% of unpaid taxes per month, with a maximum of 25%.
- When It Applies: Increases to 1% every month if the IRS issues a final notice of intent to levy.
However, the IRS still offers some relief options to ease your load, so there’s no need to get intimidated.
Check this out: Consequences of Not Paying Taxes: What You Should Know
IRS Relief Programs: Discover Your Options and Get Back on Track.
When filing back taxes, the IRS offers relief programs to help taxpayers manage their debt, even if they haven’t filed in several years.
If you’ve been asking yourself, “How far you can go to file back taxes?“ you can finally stop wondering. The IRS makes it possible by offering several relief programs to help taxpayers resolve their tax debt and compliance issues.
Here are the key programs:
| Program | Overview | Eligibility |
| Offer in Compromise (OIC) | Allows taxpayers to settle a tax debt for less than the full amount owed when full payment would cause hardship. | Proving inability to pay full liability and meeting filing requirements. |
| Installment Agreements | Enables taxpayers to pay liabilities over time in reasonable monthly installments. | Available to taxpayers who owe $50,000 or less and have filed all required tax returns. |
| Penalty Abatement | Relieves taxpayers of penalties for late filing or late payment due to a reasonably justifiable cause. | History of good compliance and a justifiable cause such as illness or natural disaster. |
| First-Time Penalty Abatement | Provides relief from certain penalties for taxpayers with a clean compliance history over the past three years. | No prior requests for penalty relief and must satisfy outstanding tax debt. |
| Currently Not Collectible (CNC) | Temporarily halts collection efforts for taxpayers experiencing severe financial hardship. | Demonstrating inability to meet essential living expenditures if payments were made. |
How to File Previous Years’ Taxes?
Filing taxes from previous years doesn’t have to be as stressful as it sounds. With a clear plan, you can take it one step at a time and get it done:
Gather the necessary information
- Request IRS Transcripts: Begin by seeking wage and income transcripts from the IRS. These will equip you with substantial information from forms (such as W-2s and 1099s), as well as any estimated tax payments or credits for the current tax year.
- Collect other income data: This includes self-employment income, investment income, or any other sort of income not recorded in IRS records.
- Deductions and Credits: Determine which deductions and credits you are qualifying for, which will reduce your tax payment.
- Plan Your Payment: If you owe taxes, file and pay as quickly as possible to prevent additional penalties, enforcement actions (such as liens or levies), or return substitutes filed by the IRS.
Complete and Submit the Returns
- Include in the Tax Return a Penalty Relief Request: When applicable, attach a written request for penalty relief, especially in the case of a single late return or reasonable cause.
- Arrange for Payment: If taxes are owed and can’t be paid in full, check payment plan options with the IRS.
- Mail the Return: Send your Form 1040 to the right address set out in IRS instructions for that tax year. Use certified mail to get proof of filing.
Processing Follow Up
- Monitor IRS Activity: Check IRS processing for your return after filing. This is particularly necessary when there has been action on the part of the IRS, including actions such as substitute returns or collection notices.
- Keep Records: Save proof of filing and correspondence with the IRS so that disputes or other compliance problems can be resolved.
File Your Taxes Today with Hopkins CPA Firm
Have you been delaying your tax return filing? Unfiled returns can lead to more than just penalties—they can cost you future Social Security benefits and even forfeited IRS refunds after three years.
Don’t risk losing your entitlements. Hopkins CPA Firm specializes in helping individuals and businesses resolve unfiled taxes, protect benefits, and stay compliant. Get in touch today to take control of your taxes.
