Submitting overdue returns ensures compliance with the IRS. Without filing:

• Penalties accrue—5% per month for late filing, up to 25% of the unpaid tax, plus interest.

• The IRS may file a substitute return, excluding deductions or credits you’re eligible for.

• • Refunds, if due, are lost after three years from the original deadline.

• You cannot be placed into any IRS Fresh Start Program until all back taxes have been filed up to date.

Filing starts the process of addressing any debt and avoids the steepest penalties, even if payment isn’t immediate.

There are approaches to filing unfiled returns:

• Do It Yourself: Collect past income records—W-2s, 1099s, or bank statements—and submit prior-year forms like Form 1040. This requires finding old documents, understanding tax laws that may have changed, and avoiding errors that could trigger audits.

• Use Tax Software: Certain programs allow past-year filings, but you must enter all data accurately and confirm support for the years in question. Complex situations, like self-employment income, may not be fully covered.

• • Hire a Tax Professional: A professional is the best choice for filing back taxes. They handle the process accurately—gathering records, preparing returns, and ensuring compliance. If filing reveals a balance owed, which is often the case, a professional can also negotiate with the IRS to resolve the debt through payment plans or settlements.