Why filing matters even if you can't pay

The failure-to-file penalty is 5% of the unpaid tax for each month a return is late, up to 25%. The failure-to-pay penalty is 0.5% per month. Filing on time, even without payment, avoids the much larger penalty. If you're owed refunds, you generally have only three years from a return's original due date to claim them before they're lost.

How many years do I need to file?

The IRS generally expects the most recent six years of returns to be filed to consider you back in compliance, although every situation is different. We review your IRS account transcripts to see exactly what the IRS has on file and what it's expecting.

If the IRS already filed for you

When you don't file, the IRS can prepare a substitute for return using the income reported to it. These returns generally don't include deductions, credits or your cost basis, so the tax they show is often far higher than what you actually owe. Filing your own correct return usually replaces it.

How we bring you current

  1. Pull your IRS (and state) account transcripts to see what income was reported and what's been assessed.
  2. Gather or reconstruct your records for the missing years.
  3. Prepare and file the returns in the right order.
  4. Address the balance: penalty relief, a payment plan or an Offer in Compromise if needed.

Frequently asked questions

Will I go to jail for not filing taxes?

Criminal prosecution for failing to file is rare and generally involves willful conduct, especially where the IRS has not yet contacted you. Coming forward voluntarily is almost always better. If there are concerns about willfulness, we'll recommend you also speak with a tax attorney.

Can I still get my refund for an old year?

Generally only if you file within three years of the original due date. After that, the refund is lost, though the return may still need to be filed.

I don't have my W-2s and 1099s anymore. What now?

We can request your IRS wage and income transcripts, which show the information returns reported to the IRS for each year.

Do I have to file state returns too?

Usually, yes. New Jersey and New York have their own filing requirements and penalties, and we handle both.