Years that were never filed
Unfiled prior year returns, what the penalty exposure actually is, and how to get current. A fixed quote is given before any work begins.
Who this is for
You missed a year, and then it became easier not to think about the next one.
You have received a notice about a return the IRS says was never filed.
You were living abroad and did not realise a US return was still due.
You want to know the exposure before you commit to anything.
If your situation is close to one of these but not quite the same, describe it and you will get a straight answer about whether it is a good fit.
What is included
- A review of which years are actually outstanding, before any return is prepared
- Preparation of the outstanding federal returns, one year at a time
- State returns for the same years where they are required
- A written explanation of the penalty and interest position as it stands
- A reasonable cause request where the facts support one
What it costs
Starting fees for this service, confirmed in writing before any work begins.
| Service | Forms | Fee |
|---|---|---|
| Individual return, simpleWages, interest, and the standard deduction. One state included. | 1040 | from $150 |
| Individual return with schedulesSelf employment, investments, or rental property. One state included. | 1040, Schedule C, Schedule D, Schedule E | from $200 |
| Additional state returnPer state, beyond the one included with the federal return. | Varies by state | from $75 |
See the full table for every service and for what changes a price.
What is not included
Stated plainly, because an unclear scope is what turns a fixed fee into an argument. Anything below can usually still be done, and is quoted separately before it starts.
- Any promise that penalties will be reduced or removed
- Negotiating an instalment agreement or an offer in compromise
- Representation in an audit or an appeal
- Bookkeeping, or reconstructing records for years where none were kept, quoted separately
Common questions
How many years do I have to go back?
There is no time limit on an unfiled return: the obligation to file does not expire, and the period for assessing tax never starts running until a return is filed. In practice the IRS generally looks for the last six years of returns to treat a taxpayer as current, but the facts of your situation decide it. The outstanding years are reviewed and confirmed with you before any return is prepared.
What are the penalties for filing late?
The failure to file penalty is 5 percent of the unpaid tax for each month a return is late, capped at 25 percent. The failure to pay penalty is 0.5 percent per month, also capped at 25 percent. When both apply in the same month the failure to file penalty is reduced by the failure to pay amount. Interest runs on top of both. If you owe nothing, there is generally no failure to file penalty on an individual return, which is why unfiled years with refunds due are often less costly than people fear.
Can the penalties be removed?
Sometimes. Penalties may be abated where there is reasonable cause, meaning circumstances outside your control rather than an oversight, and separately under first time abatement where the previous three years were clean. Neither is automatic and neither can be promised in advance. What is quoted here is the work of making the request, not a particular outcome.
Will I still get a refund for an old year?
Only within the refund window. A refund claim generally has to be filed within three years of the original due date of that return, and once that window closes the refund is lost permanently even though the return can still be filed. This is the single most common reason to deal with unfiled years sooner rather than later.
The IRS has already filed a return for me. What now?
That is a substitute for return, prepared from the income reported to the IRS by employers and banks. It gives you no deductions, no credits, and the least favourable filing status, so the tax on it is usually higher than it should be. You can still file your own return for that year to replace it, and doing so often reduces the balance.
Start here
Describe your situation and you will have a fixed fee in writing within one business day. Do not send documents or identifying numbers until that fee is agreed.