People stop filing for ordinary reasons. A bad year in the oilfield, a divorce, a move, a year of cash work with no paperwork, or one missed April that turned into three because each year made the last one feel harder. Whatever the reason, the way back is the same, and it is more routine than most people expect. We do this every year, usually without any drama.
First, find out what the IRS already has
Employers, banks and anyone who paid you on a 1099 already sent copies to the IRS. Those copies are available to you as a wage and income transcript for each year, free, through the IRS online account or by mail. This is the starting point for every catch-up job because it tells you exactly which income the IRS expects to see on each return. It also tells you whether the IRS has already prepared a return on your behalf.
The substitute return
When a return is missing and the IRS has income documents on file, it may eventually file a substitute for return. That return uses only the income it knows about, gives you the least favorable filing status, and includes no dependents, credits or business expenses. The resulting bill is almost always higher than what you would actually owe. Filing your own correct return for that year replaces the substitute, and the balance is recalculated. If you have received a notice about a proposed assessment, that is what it is, and there is a deadline to respond.
Which years to file
- Any year the IRS has sent you a notice about.
- Any year you had income above the filing threshold. The threshold depends on the year, your filing status and your age.
- Any year you are owed a refund, as long as the refund window is still open.
- As a general practice, the IRS considers a taxpayer current after the last six years of returns are filed, though it can require more in specific cases.
- Any year you need on file for another reason: a mortgage application, an immigration case, or a business loan.
Refunds have an expiration date. A refund must be claimed within three years of the return's original due date. After that, the money belongs to the Treasury, even if the return was never filed. If you were owed money for a year that is still inside that window, file it first.
How the work goes
- 01We pull or you bring the wage and income transcripts for each open year.
- 02You gather what the transcripts do not show: business expenses, mileage, childcare costs, tuition, dependents' documents. Bank and card statements can reconstruct a lot of it.
- 03We prepare the returns oldest to newest, because items carry forward from one year to the next.
- 04Prior-year returns are filed on paper or electronically depending on the year; the IRS accepts e-filing for the most recent few.
- 05If there is a balance, we set up a payment plan covering all the years at once rather than one per year.
Frequently asked questions
Will filing old returns get me in trouble?
Filing voluntarily is the opposite of trouble. The IRS treats a taxpayer who comes forward differently from one it has to chase, and penalties for late filing can often be reduced when you have a reasonable explanation and a clean history before the gap.
I lost my W-2s from those years. Is that a problem?
No. The wage and income transcript from the IRS contains the same information, and that is what we prepare from.
I was paid in cash and there are no records. What then?
You reconstruct it honestly from what you have: bank deposits, invoices, text messages, a calendar. A reasonable, documented estimate is acceptable. A round number with nothing behind it is not.
Start with one conversation
Bring whatever you have, even if it is nothing but a notice. We will tell you which years matter and what it will take. Call (432) 257-7547 or come by 700 C Andrews Hwy in Midland. English and Spanish.
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