How Do I File Back Taxes With the IRS?
Filing past-due tax returns with the IRS is a manageable process. This guide provides a clear path to becoming compliant and resolving your tax situation.
Filing back taxes is the process of submitting tax returns for previous years that were not filed by their original deadlines. The process is often more manageable than people expect. Addressing unfiled returns is a way to prevent accumulating penalties and interest and to resolve outstanding tax obligations. Filing these returns can also provide access to refunds you may be owed from prior years.
Required Information and Tax Forms
To begin filing back taxes, gather all the necessary information for each unfiled year. This includes Social Security numbers for yourself, your spouse, and any dependents, as well as all income-related documents like W-2s and 1099 forms (NEC, MISC, INT, DIV). You will also need records for any deductions or credits you plan to claim, such as receipts for charitable donations or medical expenses.
If you are missing income documents, the IRS can provide a free Wage and Income Transcript. This transcript shows data from information returns the agency has received under your Social Security number, including much of the income information from W-2s and 1099s. You can request this transcript online for immediate access or by mailing Form 4506-T, which can take several weeks to process.
You cannot use the current year’s tax forms to file for a previous year because tax laws and forms change annually. You must use the specific Form 1040 for the exact year you are filing. The IRS maintains an extensive archive of prior-year forms and instructions on its website, which are available for download.
While the IRS may only require you to file the last six years of returns to be considered compliant, there is no statute of limitations for the agency to assess taxes if a return was never filed. Therefore, addressing all unfiled years is the most complete way to resolve the issue.
How to Submit Your Back Tax Returns
You cannot e-file tax returns for prior years through standard consumer software; they must be mailed to the IRS. Each tax return must be sent in a separate envelope to avoid processing errors.
To ensure you have proof of filing, it is recommended to send each return using USPS Certified Mail with a return receipt. This service provides a postmarked receipt and tracking information that confirms delivery. A timely mailed return is considered timely filed, and the certified mail receipt serves as your legal proof of the mailing date.
The correct mailing address for your back tax return depends on your state of residence and the specific Form 1040 you are filing. You must consult the instructions for that year’s form to find the right IRS service center. After mailing the returns, it can take the IRS several months to process them and send a notice detailing any amount owed or refund due.
Payment Options for Owed Taxes
If you discover you have a tax liability, the IRS provides ways to manage this debt. A short-term payment plan gives you up to 180 days to pay your total balance and is available if you owe less than $100,000. There is no setup fee, but interest and late-payment penalties continue to accrue.
For those who need more than 180 days, a long-term payment plan, or installment agreement, allows for monthly payments for up to 72 months. To qualify for an online application, individuals must owe $50,000 or less. You can apply using the IRS’s Online Payment Agreement tool or by submitting Form 9465. Setup fees may apply but can be lower for direct debit agreements or waived for low-income taxpayers.
In cases of significant financial hardship, an Offer in Compromise (OIC) may be an option. An OIC allows certain taxpayers to resolve their liability for a lower amount than what they originally owed. The IRS evaluates your ability to pay, income, expenses, and asset equity to determine eligibility, which requires submitting Form 433-A (OIC) for individuals or 433-B (OIC) for businesses.
The total amount you owe will include the original tax plus penalties and interest. The two most common penalties are for failure-to-file and failure-to-pay. Filing your back taxes is beneficial even if you cannot pay immediately, as it stops the substantial failure-to-file penalty from growing. An approved installment agreement can also reduce the failure-to-pay penalty rate.
Claiming Past-Due Refunds
Filing a past-due tax return may result in a refund, but there is a time limit for claiming it. The IRS gives you three years from the original due date of the tax return to file and claim any refund. If you file a return more than three years after its deadline, you forfeit your right to that refund.
The three-year countdown starts from the original tax filing deadline, which is around April 15th of the following year. For example, to claim a refund for the 2021 tax year (originally due in April 2022), you must file that return by the April 2025 deadline. Filing beyond this window means the U.S. Treasury keeps the refund.
The IRS will not issue a refund for a late-filed return if subsequent years’ returns are also unfiled. The agency can hold the refund until you become fully compliant by filing all overdue returns.