What to Do If I Didn’t File Taxes Last Year

Missing the tax filing deadline can occur for various reasons. Even when a tax year has passed without a return being filed, pathways exist to address the situation. Taking action to file past-due returns is an important step to fulfill tax obligations. The process involves specific procedures, but it is manageable.

Collecting Necessary Documents

Gathering the correct documentation is the first step in preparing a prior year’s tax return. This includes various forms that report income received throughout the year. For instance, if you were an employee, you would typically receive a Form W-2, Wage and Tax Statement, from each employer, detailing your wages, tips, other compensation, and taxes withheld. This form is generally issued by January 31st of the following year.

If you worked as an independent contractor, freelancer, or gig worker, you would likely receive various Form 1099s, such as Form 1099-NEC for non-employee compensation, or Form 1099-MISC for miscellaneous income like rents or awards. Other 1099 forms report different types of income, including Form 1099-INT for interest income, Form 1099-DIV for dividends, and Form 1099-R for distributions from pensions, annuities, or retirement plans. Businesses are generally required to issue 1099 forms by January 31st if they paid you $600 or more in the calendar year.

Should you be missing any of these income documents, you can first contact the employer or payer directly to request a copy. If that is not successful, you can obtain a tax transcript from the IRS, which provides a summary of your tax return items, including income reported by payers. You can request these transcripts online through the IRS Get Transcript tool, by mail using Form 4506-T, Request for Transcript of Tax Return, or by phone. While transcripts are free and typically arrive within 5 to 10 calendar days if mailed, a complete copy of a previously filed return, including all attachments, can be requested using Form 4506, Request for Copy of Tax Return, which often incurs a fee and can take up to 75 days to process.

Beyond income, you will also need records to support any deductions or credits you plan to claim. This could include Form 1098 for mortgage interest paid, Form 1098-E for student loan interest, or records for medical expenses, charitable contributions, and childcare expenses. Maintaining accurate and complete records for the specific unfiled year is important, as these documents substantiate the figures reported on your tax return. These records allow for proper calculation of your tax liability or potential refund.

Completing Your Tax Return

Once all necessary documents have been gathered, the next step involves preparing the unfiled tax return. Prior year tax forms are available directly from the IRS website for download and printing. Alternatively, some tax software programs are designed to assist with preparing returns for previous tax years.

You have several options for completing the return. You can choose to prepare it manually using the downloaded forms, which requires careful attention to instructions and calculations. Many individuals opt to use tax preparation software, which guides them through the process by prompting for information from the collected documents and performing the calculations. Another common approach is to engage a qualified tax professional, such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA), who specializes in tax law and can accurately prepare and review your return.

Regardless of the method chosen, the process involves inputting the collected financial data into the appropriate fields on Form 1040 and any relevant schedules. This includes reporting all sources of income, applying any eligible deductions to reduce your taxable income, and claiming applicable tax credits to reduce your tax liability directly. For instance, common deductions might include state and local taxes, mortgage interest, or contributions to a retirement account, while credits could encompass the Earned Income Tax Credit or the Child Tax Credit. Accuracy in this stage is paramount, as errors can lead to processing delays or further issues.

After all information has been entered and calculations are complete, a thorough review of the entire return is essential. This ensures that all income is reported, all eligible deductions and credits are claimed, and there are no mathematical errors. The completed return should accurately reflect your financial situation for the specific tax year, ready for the submission phase.

Submitting Your Return

After you have fully prepared your prior year tax return, the next step is to submit it. For past-due returns, the primary method of submission is typically by mail. The IRS generally requires paper filing for most prior year returns, as electronic filing options are usually only available for the current tax year or a limited number of previous years through a tax professional.

When mailing your return, it is important to use the correct IRS mailing address, which can vary depending on your location and whether you are enclosing a payment. You should always verify the most current mailing address on the IRS website to ensure your return reaches the proper processing center. Sending your return via certified mail with a return receipt is a good practice, as it provides proof of mailing and confirmation of delivery.

Your submission package should include the completed tax return, all necessary schedules and forms, and copies of any supporting documents such as Form W-2s or Form 1099s. It is important to send copies, not original documents, unless specifically requested. Before mailing, make sure to sign and date your return in the designated areas.

Keeping a complete copy of everything you submit, including the return, schedules, and supporting documents, for your personal records is highly advisable. This can be useful if there are any questions from the IRS or if you need to reference the information in the future. After submission, anticipate a processing time that can range from several weeks to a few months, especially for paper-filed returns.

Managing Tax Owed or Expected Refunds

Once your unfiled tax return has been prepared and submitted, the financial outcomes will become clear. If the processed return indicates that you owe additional tax, interest will generally be applied to the unpaid amount from the original due date of the return until the date of payment. There may also be additional amounts for failure to file or failure to pay, which are typically calculated by the IRS once your return is processed.

If you are unable to pay the full amount due immediately, the IRS offers various payment options. You can make a full payment if feasible. Alternatively, you may be able to set up a payment plan, such as an Installment Agreement, which allows you to make monthly payments over a period of up to 72 months. In certain situations, an Offer in Compromise (OIC) might be an option, allowing some taxpayers to resolve their tax liability with the IRS for a lower amount than what they originally owed, if they meet specific financial hardship criteria.

Proactive communication with the IRS is important if you anticipate difficulties in paying your tax liability. The IRS provides various avenues to discuss payment arrangements and potential relief from certain amounts. Addressing the tax owed promptly can help mitigate further accumulation of interest and additional amounts.

Conversely, if your unfiled return results in a refund, it is important to be aware of the time limit for claiming it. Generally, you must file a claim for a refund within three years from the date the original return was due, or two years from the date the tax was paid, whichever is later. If the refund is claimed within this period, it will typically be issued via direct deposit to your bank account or as a paper check mailed to your address on file. However, any refund due may be offset by other outstanding federal tax debts, state tax obligations, or other federal non-tax debts, such as past-due child support or defaulted student loans.