Tax relief/Unfiled returns
Behind on your tax returns? The way back is shorter than you think.
Every year a return goes unfiled, the IRS is free to write one for you, and it will not be generous. A California licensed CPA reconstructs what is missing, files what the IRS actually requires, and puts you back in control before collection starts. Fixed fee, agreed before the work begins.
CPACertified Public Accountant
CaliforniaLicensed CPA
15+ yearsExperience
NationwideFully virtual
What happens when returns go unfiled
Not filing rarely starts as a decision. A difficult year, a missing form, a balance you could not pay, and then the next deadline arrives with the last one still open. The IRS does not wait for you to catch up. Its systems already hold your W2s, 1099s and brokerage statements, and sooner or later it acts on them.
The IRS files for you
Under its substitute for return program, the IRS prepares a return from the income reported to it and assesses tax on that basis. It uses the least favorable filing status and ignores the business expenses, dependents and deductions you were entitled to. The resulting balance is often far larger than what you actually owe.
Penalties compound quickly
The failure to file penalty runs at 5 percent of the unpaid tax for each month a return is late, up to 25 percent. That is ten times the monthly penalty for filing on time and paying late, which is why filing, even without payment, is almost always the first move.
The clock never starts
When no return is filed, the normal three year window for the IRS to assess tax never opens, let alone closes. The IRS can assess a year from a decade ago. Filing is what starts that clock running in your favor.
Refunds expire
If the IRS owes you money for a year, you generally have three years from the original due date to claim it. After that the refund is lost, and it cannot be used to reduce what you owe for other years.
Every other option waits
An offer in compromise, an installment agreement, penalty relief: the IRS will not consider any of them while required returns are missing. Filing compliance is the gateway to every resolution.
How many years do you actually need to file?
Most people assume they must file every missing year. Often they do not. IRS enforcement policy generally looks for the last six years before it considers you in good standing, although the right number for you depends on your income, whether the IRS has already prepared returns for older years, and whether any of those years would produce a refund.
Filing more years than necessary can create liability the IRS was never going to pursue. Filing too few leaves you out of compliance and unable to resolve anything. Getting that answer right is the first thing we do.
Already received an IRS prepared return? We file an accurate original return to replace it. Because the IRS version ignores your deductions, that step alone frequently removes a large share of the balance.
Mistakes that make it worse
We see the same few errors turn a manageable problem into an expensive one.
Guessing at the numbers
Estimating income from memory leads to mismatches, new notices and penalties later. We pull your IRS wage and income transcripts first, so every return agrees with what the IRS already has on file.
Filing without a plan
Sending in several years of returns at once, with no strategy for the balances they show, can put you straight into collection. Returns should go in alongside a plan for paying or resolving what they report.
Waiting for a letter
Coming forward before the IRS contacts you is always better than responding once a revenue officer is assigned or a summons arrives. Voluntary filing is treated very differently from compliance the IRS has to compel.
How Kim Accounting & Advisory handles it
One CPA works your case from the first call to the final resolution. Here is what that looks like for unfiled returns.
- 1
Pull the record
We file a power of attorney and pull your wage and income and account transcripts for every open year, so we see exactly what the IRS sees, including any returns it has already prepared for you.
- 2
Reconstruct and prepare
Using the transcripts, your bank records and whatever documents survive, we rebuild each year and prepare accurate returns that claim every deduction and credit you are owed.
- 3
File and resolve
Returns go in together with a plan for any balance they show, whether that is a payment arrangement, an offer or penalty relief. You know what you will owe before anything is filed.
Not sure how many years you are behind?We can find out on the first call. Your IRS transcripts show exactly which years are open.
Find out where you standCommon questions
Straight answers to what people ask us most about unfiled returns.
Will I get in legal trouble for not filing?
Criminal prosecution for failing to file is uncommon and is generally reserved for cases involving substantial income and deliberate concealment. The vast majority of people with unfiled returns face civil penalties, not charges. Filing voluntarily, before the IRS contacts you, is the strongest step you can take to keep it that way.
I do not have my records. Can you still file?
Yes. The IRS keeps wage and income transcripts showing what employers, banks and brokers reported for you, generally going back ten years. Combined with bank statements and a careful reconstruction of expenses, that is usually enough to prepare accurate returns.
The IRS already filed a return for me. Can that be changed?
Yes. We prepare and submit an accurate original return and ask the IRS to reconsider the assessment it made. Because IRS prepared returns leave out deductions and use the least favorable filing status, the corrected balance is often substantially lower.
What if I cannot pay what the returns show?
File anyway. Filing stops the largest penalty from growing and opens the door to payment plans, an offer in compromise and penalty relief. We plan the resolution at the same time we prepare the returns.
What clients say
“I’d like to start by expressing my appreciation for Jason’s patience and thoroughness. My situation was quite complicated, but he guided me through every step of the process with clarity and care! What stood out most was his willingness to offer thoughtful advice, and if he didn’t have an immediate answer, he took the time to research and ensure he provided the best possible guidance. He consistently went above and beyond to assist me, and I highly recommend his services!”
Anibal Ruelas
Verified by Trustindex. Every review above is reproduced word for word.
Often part of the same problem
IRS problems rarely arrive one at a time. These are the issues that most often come with unfiled returns.
Let us bring you current
At Kim Accounting & Advisory, unfiled returns are handled by a CPA, not a call center. Jason Kim pulls your transcripts, prepares every return and plans the resolution alongside them, for a fixed fee agreed before any work starts.
- Find out how many years you actually need to file
- Learn whether the IRS has already filed for you
- Leave with a clear plan and a firm price
Free consultation
One conversation with a licensed CPA. No obligation and no pressure. If we are not the right fit, you will still leave with a clear next step.
Find out where you standServing clients nationwide, fully virtual.