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IRS Problem Resolution

Years of unfiled returns? Common — and fixable.

Missing years of returns is a surprisingly common situation. We reconstruct records, file in the order that minimizes penalties, and then negotiate resolution on any remaining balance. Most clients are up-to-date within 60-90 days of engaging us.

In short

Failing to file is a separate problem from failing to pay — and often the worse one. The IRS charges 5%/month (up to 25%) for failure-to-file vs. 0.5%/month for failure-to-pay. We file back returns in the order that minimizes penalties, claim every legitimate deduction, and resolve any remaining balance. Most multi-year non-filer cases close within 60-90 days.

Why filing matters more than paying

The IRS distinguishes between failure to file (severe penalty) and failure to pay (modest penalty). Filing immediately stops the failure-to-file penalty even if you can't pay the balance. This single shift in approach saves most non-filer clients thousands.

How we reconstruct records

  • Pull IRS wage and income transcripts (W-2s, 1099s, K-1s the IRS has on file)
  • Identify deductions and credits you're entitled to claim
  • Estimate self-employment income from bank deposits if records are incomplete
  • Reconstruct expenses using contemporaneous evidence (credit-card statements, bank records, calendars)
  • File returns in chronological order to apply refunds and credits forward

Substitute For Return (SFR) cleanup

If the IRS filed a Substitute For Return on your behalf for missing years, it almost certainly overstates your income (no deductions, no credits). We file a properly prepared original return to replace the SFR — often slashing the assessed balance.

FAQ

Questions we hear about non-filed tax returns.

How many years back do I need to file?
Generally six years to be in good compliance standing with the IRS, even if more years are missing. We file the most recent six and address older years on a case-by-case basis.

Ready for a straight answer on your taxes?
Start with a free consultation.

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(561) 278-1199

KDM Accounting

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