The Untold Consequences of Missing Tax Filings

Tax season is here, and while filing your current-year return is essential, it’s also the perfect time to address any past due filings. Many taxpayers forget or put off filing prior-year returns, but this could lead to unnecessary penalties, interest, and potential IRS enforcement actions. Let’s break down how working with a tax professional can help you get caught up on those missed returns, ensuring you’re back in good standing with the IRS.

Here are six key actions tax professionals like us take to successfully file prior-year returns:


1. How Many Prior-Year Returns Do You Need to File?

• IRS Guidelines:

  • Most taxpayers are required to file the current year plus the previous five years.

  • In 2025, most taxpayers need to file 2019-2024 returns to be considered compliant.

• Why This Matters:

  • Filing too many returns or not filing enough can lead to unnecessary confusion, potentially increasing your tax debt or missing critical deductions.

  • By working with us, we’ll ensure you’re filing the correct number of returns based on IRS regulations, preventing unnecessary delays or liabilities.

2. Rebuilding Your Tax Records with IRS Assistance

• Request IRS Transcripts:

  • We can request IRS Wage and Income Transcripts to help you rebuild your tax records. These transcripts provide information the IRS already has on file for you (W-2s, 1099s, etc.).

• Why This is Crucial:

  • Without proper records, it’s nearly impossible to file an accurate return. Using IRS transcripts allows us to eliminate guesswork and create a return that matches the IRS’s records, reducing the likelihood of audits or penalties down the line.

3. Filing Your Returns Accurately and Efficiently

• Handling Prior-Year Returns:

  • Filing past returns with DIY software can be difficult. Many programs don’t allow e-filing for older returns.

  • We use specialized software to file your returns correctly, saving time and avoiding common filing mistakes.

• Why Accuracy is Key:

  • Incorrectly filed returns can lead to incorrect tax calculations, resulting in overpayment or underpayment. With professional help, your returns will be accurate, ensuring you don’t pay more than you owe or miss out on valuable tax benefits.

4. Confirm IRS Acceptance and Monitor Your Return

• IRS Review Process:

  • Once a return is filed, the IRS reviews it for accuracy, comparing reported information to their own records.

  • We actively monitor your return’s status and follow up with the IRS if necessary.

• Why Staying on Top of Your Return is Vital:

  • The IRS doesn’t simply accept every return immediately. If there are discrepancies, they’ll flag it, delaying the process. Our monitoring ensures any issues are addressed quickly, minimizing potential delays and ensuring your return is accepted smoothly.

5. Request Penalty Relief if You Owe Taxes

• Available Relief Programs:

  • The IRS offers penalty relief programs like First-Time Penalty Abatement and Reasonable Cause Relief to help reduce or eliminate penalties for late filings.

• Why Reducing Penalties Helps You:

  • Tax penalties can add up quickly, creating unnecessary financial strain. Penalty relief options can help reduce the burden, especially if this is your first time filing late or if you can demonstrate valid reasons for your delays.

6. Explore Payment Options if You Owe Taxes

• Payment Plan Options:

  • If you owe taxes, we can help you explore options like setting up a payment plan, negotiating an Offer in Compromise (OIC), or applying for an extension to pay.

• Why Finding a Payment Solution is Essential:

  • Failure to address a balance due can result in IRS enforcement actions like liens or levies. By setting up a payment plan or exploring other relief options, we can help you avoid these actions, ensuring you stay in good standing with the IRS.

A Growing Need for Help with Prior-Year Filings

With the IRS increasing its focus on non-filers, it’s more important than ever to get caught up on your returns. Data shows that over 50 million individuals failed to file required returns between 2015 and 2019, and many of them are still facing the consequences today. The IRS is now actively addressing past non-filers, and the sooner you act, the better.

Get Back into Compliance with Taxagon

If you’ve missed filing your returns or are dealing with overdue filings, don’t wait – it’s time to take action. Our team of experienced tax professionals is here to guide you through every step of the process, ensuring your returns are accurate, timely, and compliant with IRS guidelines.

Contact us today to schedule a consultation and start the process of getting your tax filings in order. Let us help you resolve past issues and bring you peace of mind during this tax season.