How to File Back Taxes for Free With the IRS
Address unfiled tax returns from previous years. Our guide details the process of using free IRS resources to achieve compliance and manage your tax situation.
Filing unsubmitted tax returns, often called back taxes, ensures compliance with federal tax obligations. The Internal Revenue Service (IRS) provides multiple avenues for taxpayers to file these returns without paying for preparation assistance. Addressing these obligations prevents further accumulation of interest and penalties and can unlock refunds from prior years.
Gathering Your Tax Information
To file for a specific year, you must first collect all relevant financial information. This includes Social Security numbers and dates of birth for yourself, your spouse, and any dependents. You will also need all documents reporting your income, such as W-2s from employers and 1099 forms for independent contractor work or interest income.
If you are missing income documents, request a free Wage and Income Transcript from the IRS. This transcript provides data from all W-2s, 1099s, and other information returns the IRS has on file for a specific tax year. You can request it online through the IRS “Get Transcript” service for immediate access or by mailing Form 4506-T, which can take several weeks.
The Wage and Income Transcript contains core data for your return, including wages and federal income tax withheld. This transcript will not include information on potential deductions or credits. For details on deductible expenses like charitable donations, you will need to consult your own financial records.
You can also obtain missing information by contacting the source directly. Former employers can provide past W-2s, and financial institutions can reissue 1099s. This approach can be faster than waiting for an IRS transcript by mail.
Accessing Prior-Year Tax Forms
After gathering your financial data, you must obtain the correct tax forms for the years you need to file. Tax laws change annually, so you must use the specific Form 1040 that corresponds to the year you are filing to avoid rejection.
The IRS website is the source for all prior-year tax forms and instructions. Navigate to the “Forms, Instructions & Publications” section and select “Prior Year Forms & Instructions” to search for a form by its number and tax year.
You should download both the tax form and its corresponding instruction booklet. The instructions provide line-by-line guidance and contain information like the standard deduction amounts, tax tables, and rules for credits and deductions in effect for that year.
Free Tax Preparation Services
The IRS sponsors free services to help prepare back tax returns, including the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA sites are generally available to people who make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers. TCE provides free tax help for those 60 or older, specializing in pensions and retirement issues.
IRS-certified volunteers at these sites are trained to handle prior-year returns. To use a VITA or TCE service, you will need to bring all your documents, including photo identification and Social Security cards for everyone on the return. You can find a nearby location using the VITA/TCE Locator Tool on the IRS website.
For those comfortable preparing their own taxes, IRS Free File Fillable Forms is an option. This service provides electronic versions of federal tax forms to fill out online. The system performs basic calculations but does not offer the step-by-step guidance found in guided software, making it suitable for straightforward tax situations.
The standard IRS Free File guided software is for the current tax year only. VITA, TCE, and Free File Fillable Forms are the most reliable free options for back taxes. Always access these services directly through the IRS website to ensure you are using the official, no-cost versions.
Submitting Your Completed Tax Returns
After filling out your prior-year tax returns, you must submit them to the IRS. Back tax returns must be filed by mail, as they cannot be e-filed. Each tax year’s return must be mailed in a separate envelope to avoid processing delays.
The correct mailing address is in the instructions for the specific Form 1040 you are filing. The address depends on your state and whether you are enclosing a payment. Using the address in the instruction booklet is necessary to prevent delays.
Before mailing, you must sign and date the return, as an unsigned return is invalid. If filing a joint return, both spouses must sign. Attach copies of your W-2s and any other required forms to the front of your Form 1040, and consider using a mailing service with tracking.
After You File Your Back Taxes
After mailing your back tax returns, you must wait for the IRS to process them. Paper-filed returns for prior years take longer to process, often six weeks or more. Once the return has been processed, you can check the status of a refund for that year using the “Where’s My Refund?” tool on the IRS website.
The outcome of filing back taxes varies. You might be due a refund, but you must file the return within three years of its original due date to claim it. You may also owe no additional tax or receive a bill for taxes owed, plus penalties and interest.
If you receive a bill from the IRS, it will include the tax owed plus any penalties and interest. The IRS offers several payment options if you cannot pay the full amount. You may be able to set up an Installment Agreement for monthly payments or apply for an Offer in Compromise to settle the debt for less if you meet eligibility criteria.