Finding out you're behind on your tax returns can feel overwhelming. Many people avoid dealing with unfiled tax returns because they are worried about what they might owe, penalties, or how the IRS will react.
The good news is that you're not alone, and in most cases, the situation is fixable.
First, Don't Panic
We regularly meet with taxpayers who are one, two, five, or even more years behind on their tax returns.
There are many reasons people fall behind:
- Health issues
- Family emergencies
- Divorce
- Loss of a spouse
- Financial hardship
- Starting a business
- Feeling overwhelmed by tax paperwork
The most important thing is to start addressing the problem.
What Happens If I Don't File?
The consequences depend on your situation.
If you are due a refund, you generally have three years to claim it before the refund expires.
If you owe taxes, penalties and interest may continue to accrue until the returns are filed and balances are resolved.
The IRS provides information about filing requirements and unfiled returns here:
Do I Need to File Every Missing Year?
Not always.
The number of years that should be filed depends on your individual circumstances and whether the IRS has specific filing requirements.
It is also important to consider state filing requirements. Federal and state filing requirements are not always the same. Depending on where you lived, worked, or earned income, you may have filing obligations in one or more states even if a federal return was not required.
For Oregon taxpayers, filing requirements depend on factors such as income, residency, filing status, and Oregon-source income. The Oregon Department of Revenue provides filing requirement information here:
Before preparing multiple years of returns, it is often helpful to review IRS transcripts, state filing requirements, and available records to determine exactly which years need attention.
What If I'm Missing My Tax Documents?
This is extremely common.
Many taxpayers no longer have copies of their:
- W-2s
- 1099s
- Social Security statements
- Brokerage statements
In many cases, transcripts can be obtained from the IRS to help reconstruct income information.
What If I Can't Afford to Pay?
Many people avoid filing because they are afraid they cannot pay the tax.
In most cases, filing the returns is still the first step. The IRS generally has options available for taxpayers who cannot pay in full, including payment arrangements.
The Biggest Mistake: Doing Nothing
The longer unfiled returns are ignored, the harder they often become to resolve.
Records become more difficult to obtain, and penalties and interest may continue to increase.
Taking action now is usually easier than waiting another year.
Final Thoughts
If you're behind on your tax returns, you're not the first person to be in that situation, and you won't be the last.
At Grants Pass Tax Service, we help taxpayers determine which years need to be filed, obtain available records, and develop a plan to get caught up.
Taking the first step is often the hardest part, but it is usually much less overwhelming than people expect.
Frequently Asked Questions About Unfiled Tax Returns
How many years can I be behind on taxes?
There is no single answer. Every situation is different.
Can I still get a refund if I didn't file?
Possibly. Refunds generally expire if not claimed within three years of the original due date.
What if I lost my W-2s and 1099s?
IRS transcripts may help reconstruct income information.
Should I file if I can't pay?
In many cases, yes. Filing and paying are two separate issues.
Do I need to file state tax returns too?
Possibly. State filing requirements are often different from federal filing requirements. Depending on where you lived, worked, or earned income, you may need to file returns in one or more states. For Oregon taxpayers, filing requirements can be found at: Oregon Filing Requirements.
Will the IRS come after me if I'm behind?
Every situation is different, but addressing the problem is generally better than continuing to wait.
