Falling behind on tax filings is overwhelming. But, catching up is compulsory. If you are unsure about how to file prior year taxes, L&Y Tax Advisors simplifies the process.
Whether you are due a refund or you owe, taking action now will avoid further penalties. Doing so will also keep you on good standing with the IRS.
What are Prior Year Taxes?
Prior year taxes refer to past tax returns you missed filing on time. Even if you skipped a year or more, the IRS expects you to file all overdue returns, regardless of whether you owe money or not.
Filing late may result in interest and penalties. But, failing to file at all exposes you to long-term consequences.
How to File Prior Year Taxes?
Gather Your Documents
Collect your:
- Income statements (W-2s, 1099s)
- Deductions
- Any other document (needed for each skipped year)
Obtain the Correct Tax Forms
Use IRS resources to download the prior-year 1040 forms and instructions.
Complete Your Returns
Prepare each overdue return accurately.
Mail Older Returns
You can only e-file the two most recent prior years. Older ones often must be paper-mailed to the IRS.
Pay What You Can
Even if you cannot pay your full tax bill, file anyway. The IRS encourages you to pay whatever amount you can to limit interest and penalties.
Statute of Limitations
To claim a refund, you have:
- Three years from the date the original return was filed, or
- Two years from the date tax was paid
How to File Prior Year Taxes Online?
E-filing prior year returns is limited. In most cases, only the two most recent years can be filed electronically.
If you qualify, use any of the following options:
- Online tax software
- IRS Free File tool (if eligible)
- IRS Direct File (if available in your state)
For more complex or older returns, prepare them in software. Print them. Afterwards, mail them in.
How to File Prior Year Taxes for Free?
If you need help filing, the following IRS-sponsored programs offer free preparation and e-filing for qualifying individuals:
- Volunteer Income Tax Assistance (VITA)
- Tax Counseling for the Elderly (TCE)
Such services are staffed by IRS-trained volunteers. They follow quality review procedures.
If you are comfortable doing it yourself, use the following forms (depending on your income):
- IRS Free File
- Free File Fillable
The Bottom Line
If you have skipped filing tax returns for previous years, do not delay it anymore. Filing your prior year taxes – even if you cannot pay in full – limits future penalties. Doing so ensures your compliance.
With the help of online tools or free IRS-sponsored services, the process is more accessible than before. If you want professional guidance, reach out to our trusted advisors. Take this step now for your own mental peace and close this chapter responsibly!
