How to File Unfiled Tax Returns Even If You Don't Have Records or Receipts

If you have not filed a tax return for a previous year or several years, catching up can feel daunting, but it is possible. To help you out, this post explains who should file back taxes and the benefits of filing prior years' returns. Then, it provides a step-by-step overview of how to file back taxes.

 Wondering what will happen if you don't file? The consequences vary based on how long it's been since you last filed taxes, but you risk having the IRS assess taxes against you and forcibly collect them through wage garnishments, bank levies, and asset seizures. 

Key takeaways

• If you're required to file, you can face penalties and collection actions for not filing.
• You have up to three years to collect tax refunds for prior tax years.
• Catching up on back taxes helps to reduce penalties, avoid unwanted tax assessments, and create peace of mind.
• To file old returns, you must use the form from the relevant tax year.
• You can access old wage information directly from the IRS.
• You can prepare returns online with many different types of tax prep software, but you will need to print and mail the returns.
• A tax pro can help you file old returns, even if you don't have all of your records.

Do You Need to File Back Taxes?

If you were required to file and you haven't, you should file to get back into compliance with the IRS and avoid unwanted tax assessments and collection actions. Generally, the IRS considers you to be in good standing if you file the last six years of returns, but in rare situations, the agency may require you to go back further. 

You must file if any of the following apply for the year(s) you have unfiled returns:

• Earned over the standard deduction for your filing status.
• Have over $400 in net self-employment income.
• Owe alternative minimum tax.
• Owe tax on a qualified retirement plan.
• Have unreported tips.
• Owe household employment taxes.
• Received distributions from a health savings account.
• Earned more than $108.28 from a church or church-controlled organization that doesn't withhold Social Security or Medicare.
• Received advance premium tax credits for your health insurance premiums.

However, even if you're not required to file, you may want to file to claim a refund. To learn more about filing requirements, check out our guide on who needs to file a tax return.

How to Claim Tax Refunds for Previous Years

You can claim tax refunds for up to three years after the filing deadline. For example, your 2024 income tax return is due April 15, 2025. You must file by April 15, 2028, to claim a refund. If you've already filed, you also have three years to amend your return to claim a refund. 

There are a few fairly rare exceptions to the three-year rule including the following:

• If you've made a payment in the last two years, you can claim a refund of those taxes even if the three-year deadline has passed.
• You have up to one extra year to claim a refund if you are affected by a Presidentially declared disaster area.
• You get extra time if you served in a combat zone or contingency operation.
• You have seven years from the return due date to collect a refund based on a bad debt reduction or worthless security loss.

Benefits of Filing Back Taxes

1. Claiming possible tax refunds - Every year, taxpayers fail to claim about one billion in tax refunds.
2. Stopping late filing penalties - Late filing penalties of 5% of your unpaid taxes accrue every month you don't file, up to a maximum of 25%.
3. Avoiding a substitute for return (SFR) - If you don't file, the IRS can assess tax against you with a substitute for return.
4. Paying Social Security and Medicare - If you're self-employed and don't file, you won't get credit for making Social Security or Medicare contributions and may not qualify to claim these benefits during retirement.
5. Being able to prove your income - Many lenders including mortgage lenders require tax returns to prove your income.

Step-by-Step Instructions on How to File Old Tax Returns Even If You Don't Have Documents

To file old tax returns, you must find or reconstruct all of your tax documents for the year, and you also must make sure you have the IRS forms for the year(s) you didn't file. Keep reading for a more granular breakdown of the process.

1. Collect All Necessary Documentation

You need W2’s, 1099’s, and all other relevant forms for the year in question. If you are itemizing deductions, you also need receipts and records to back up your claims. Self-employed people and sole proprietors should find their profit and loss reports for the years they want to file.

2. Find Missing Documents

If you don’t have all of your income documents, contact your employer, former employer, financial institution, or whoever issued the payments. With wages, you can often get the numbers you need from your last pay stub of the year. Alternatively, you can get the last three years of wage transcripts (W2s, 1099s) from your IRS online account, or contact the IRS directly at 1-800-829-1040 for older wage documents. You can request wage and income transcripts up to 10 years back through the mail.  

3. Reconstruct Old Business Records

If you don't have a profit and loss report for your business/self-employment income, contact your bank to get old bank statements. That can help you identify income and expenses, but keep in mind that if you get audited, the IRS may not be willing to accept old bank records as proof of business expenses.

4. Locate the Necessary Tax Forms or Find Tax Software to Help You

When filing back taxes, you need to use the tax forms from that year. For example, if you are preparing an individual tax return for 2023, you have to use Form 1040 for 2023. This is because the rules and credits change from year to year. You can find most old forms online. If you cannot find one you need, contact the IRS or your state’s Department of Revenue.

A lot of tax prep software will allow you to prepare the last few years' of tax returns online, but you won't be able to e-file the returns. Instead, you will need to print and mail them once they are done. Some companies offer up to seven years of prior tax returns, while others only offer three or four years. Depending on how far back you want to go, you may need to download certain types of software rather than accessing it online. 

5. Send In Your Tax Returns

In most cases, you can’t submit old returns electronically. Instead, you need to mail them to the IRS or your state revenue department. Send your returns to the address on the tax return or tax return directions. If you receive a notice reminding you to file a return, use the address on that IRS letter. If you are working with an IRS Revenue Officer, you should send the complete returns to that person. When in doubt, contact the IRS or state directly.

Hire a Tax Pro to Help With Unfiled Returns

Although optional, getting professional help can make the process easier. Tax pros can easily obtain your wage and income transcripts. They can help you re-construct details about business income and expenses. They can also advise you about what to do if you owe taxes after you file. Working with a pro helps you get back on track in the fastest, least painful way possible. Also, professional tax prep software lets you file the last two years online so that helps to speed up the process. 

Other Considerations

If you are filing old IRS tax returns, in most cases, the IRS will want the last six years. State tax laws may be different, so it is best to check with a tax professional (attorney, EA, CPA) in your state.

Filing your return is the first step to getting back into compliance with the IRS and most states. There are many negative consequences that come along with having unfiled tax returns. Filing a tax return is usually a smart move even if you can’t afford to pay off the balance in full. Filing reduces or prevents penalties, and once you file, the IRS and most states are willing to work with you.

It is always recommended that you work with a tax professional to file tax returns. Moreover, it is essential that a tax professional first complete a financial analysis and tax investigation. A review of your current income, expenses, liabilities, assets, and tax transcripts will help the tax professional determine your best courses of action. Start your search today to find the most qualified professionals to help with unfiled IRS & State tax returns by using the search box below.