Depending on the total amount (and type) of income you received during the year, you may not need to file any.
Filing your federal tax returns is the most important aspect to fixing any problems you may have with the IRS.
In the first place, the law requires each individual to file a return if they meet certain conditions. (If an individual meets the conditions, it creates a “filing requirement”).
In some instances when individuals owe money to the IRS, filing correct back tax returns may be all that is required in order to eliminate the balance due or, perhaps, lower it significantly.
If an individual has a filing requirement, but does not voluntarily file a tax return, the IRS can choose to file a Substitute For Return (“SFR”) on their behalf.
In some cases, the IRS will even assign a non-filer (or, “delinquent taxpayer”) to an individual known as a Revenue Officer. The Revenue Officer will pursue the individual to make certain that all required returns have been filed.
Which Returns Do I Need to File?
The IRS requires that you file, at a minimum, the past six tax returns and the current year, although they reserve the right to request as many unfiled returns as they need. If any of these years have a filing requirement and remain unfiled, the IRS will consider the taxpayer to be out of compliance (or, "non-compliant").
If you have a balance due and want to resolve your tax debt, the IRS will require that the taxpayer be in compliance before setting up any sort of resolution.
Also, the IRS will only allow you to receive a tax refund for three years after the due date of the return. While it is always important to file all of your required tax returns, if you are due a refund, it is especially important that you file your tax returns as soon as possible. If you wait too long, the statute of limitations on your refund can expire and you will be unable to receive the refund when you finally file the return.
How Can I File My Missing Returns?
If you want to file your returns, but do not have the information needed to do so, you can contact the IRS to request your Wage & Income transcripts (often referred to as, “IRPs” within the IRS).
The IRS generally has the income information for most individuals from 2000-2008 (IRPs for each year come "on-line" for the Government in late May of the following year). You can use this information as a guideline for preparing your past due tax returns.
However, you will need to make sure that you have proof of all income and expenses listed on your return in the case of an audit.
See below to determine whether or not you have a filing requirement for a past due tax return. If your gross income was higher than the amount specified for your filing status, you will need to file a return.
NOTE: If you are self-employed (i.e. you receive a Form 1099-MISC for your income and/or have a business), you have a filing requirement if your GROSS receipts are $400 or more, regardless of whether or not your gross income was more than the amount below.
Year
Single
Head of Household
Married Jointly
Married Separate
Qualifying Widow
2002
$7,700
$9,900
$13,850
$3,000
$10,850
2003
$7,800
$10,050
$15,600
$3,050
$12,550
2004
$7,950
$10,250
$15,900
$3,100
$12,800
2005
$8,200
$10,500
$16,400
$3,200
$13,200
2006
$8,450
$10,850
$16,900
$3,300
$13,600
2007
$8,750
$11,250
$17,500
$3,400
$14,100
2008
$8,950
$11,500
$17,900
$3,500
$14,400
2009
$9,350
$12,000
$18,700
$3,650
$15,050
Reed Humphrey is VP of Marketing and Business Development at easyIRS.com, Unfiled Tax Return Specialists to Solve Back Tax Issues.
Reed has an impressive history of sales and marketing leadership in companies such as BCE Emergis and ADP. He has co-founded or led marketing at four different start-ups, including a tax services firm that grew revenues by 100-fold under his direction.