Can I File My 2021 Taxes in 2023?

It is possible to file your 2021 tax return in 2023, even though the original deadline has passed. This guide will walk you through the necessary steps and explain what to expect when addressing your unfiled 2021 taxes.

Filing Past-Due Tax Returns

The Internal Revenue Service (IRS) encourages taxpayers to file all required returns, regardless of how late they might be, to avoid additional penalties and interest. Even if you cannot afford to pay any tax due, filing the return is an important first step. This establishes your tax liability and allows you to explore payment options or relief programs.

Filing late can arise from various situations, such as missing the original deadline, unforeseen personal circumstances, or receiving corrected tax documents after the due date. The IRS prioritizes compliance and offers pathways for taxpayers to become current. Completing and submitting your delinquent return is the initial action to resolve any outstanding tax matters.

Preparing Your 2021 Tax Return

To prepare your 2021 tax return, gather all relevant financial documents from that year. These include:
Income statements like Form W-2 from your employer.
Various Forms 1099 for other income sources (e.g., 1099-NEC for contractor work, 1099-INT for interest, 1099-DIV for dividends).
Form 1098 for mortgage interest or receipts for itemized deductions, if applicable.

If you are missing any documents, obtain copies directly from the issuing entity, such as your former employer or financial institution. Alternatively, the IRS offers a service to request a tax transcript, which provides a summary of information reported to the IRS for a specific tax year. Official 2021 tax forms, including Form 1040 and its schedules, are available on the IRS website. Tax software from that year, if available, can also assist in preparation.

Submitting Your Completed Return

Once your 2021 tax return is prepared, the primary method for submitting past-due returns is by mail. Electronic filing options through commercial tax software are generally unavailable for prior tax years after a certain point. Mail your completed Form 1040 and any supporting schedules or forms in a single envelope.

Send your return via certified mail with a return receipt requested to provide proof of mailing and delivery. If you owe tax, include a check or money order made payable to the “U.S. Treasury” along with a completed Form 1040-V, Payment Voucher. If filing multiple past-due years, mail each tax year’s return in separate envelopes to the appropriate IRS address found in the Form 1040 instructions.

Understanding Financial Outcomes

Filing a past-due tax return can lead to certain financial outcomes, depending on whether you owe tax or are due a refund. If you owe tax, two primary penalties may apply: the failure-to-file penalty and the failure-to-pay penalty. The failure-to-file penalty is typically 5% of the unpaid taxes for each month or part of a month that a return is late, capped at 25% of your unpaid tax.

The failure-to-pay penalty is generally 0.5% of the unpaid taxes for each month or part of a month that taxes remain unpaid, also capped at 25%. Interest accrues on unpaid taxes and penalties from the original due date until paid. The interest rate is determined quarterly (federal short-term rate plus 3 percentage points).

If your past-due 2021 tax return results in a refund, you will not face failure-to-file or failure-to-pay penalties. However, there is a statute of limitations for claiming a refund, which is typically three years from the date the original return was due or two years from the date the tax was paid, whichever is later. If your 2021 refund is claimed after this period, you may forfeit the refund amount.