IRS NONFILER & SUBSTITUTE FOR RETURN HELP
The IRS Probably Already Knows More Than You Think
Honestly? The IRS probably already knows more than you think, they just haven't necessarily acted on it yet.
Your employer, bank, or client may have reported income to the IRS on forms such as W-2s and 1099s, even if you haven't filed a tax return. That information can help the IRS identify missing returns. Your actual tax liability depends on your complete facts, deductions, credits, and payments.
Explore IRS Nonfiler & Substitute for Return Help
Here's how you find out for sure
- Ask for your IRS tax transcripts. Wage and income transcripts show information reported to the IRS; account transcripts help you review account activity. Start with the records rather than guessing.
- Look for notices. If the IRS has marked your account for attention, it may send notices by mail, including CP59 or CP515. If you moved without updating your address, check whether notices went to your old address.
- Set up your IRS online account. Review available account information, balances, notices, and tax records to understand what the IRS has on file.
- Understand the Substitute for Return (SFR). If a required return remains unfiled, the IRS may prepare a return using income information reported to it. This does not happen to every nonfiler. An SFR may not include all deductions, credits, dependents, or business expenses you are entitled to claim, potentially resulting in a higher tax assessment than a correctly prepared return.
Four things taxpayers should consider
- Non-filing can be more costly than filing and owing. The failure-to-file penalty is generally greater than the failure-to-pay penalty. File required returns even if you cannot pay the full amount right away.
- Get your transcripts before you speculate or panic. Reviewing the records helps you understand the missing years and what needs attention.
- Take action proactively. Addressing unfiled returns and responding to notices promptly can help limit additional penalties and interest. If the IRS has prepared an SFR, filing your own accurate return may allow eligible deductions and credits to be considered.
- Get professional help when several years are involved. A tax professional or enrolled agent can obtain transcripts with proper authorization, review missing returns and notices, and help develop a filing plan based on your situation.
