Falling behind on your tax returns can happen for many reasons, but ignoring unfiled returns can make the problem harder to resolve. Gabaie & Associates, LLC helps individuals and businesses in Frederick get caught up on past-due tax returns and address the penalties, tax debt, and IRS notices that may come with them.
Have unfiled tax returns? Call (410) 358-1500 or contact Gabaie & Associates to discuss your options.
What Should I Do If I Have Unfiled Tax Returns?
If you have missed one or more tax returns, the first step is usually to determine exactly which years are missing and what information the IRS has on file.
You do not necessarily have to wait until you can pay the entire tax bill before filing. The IRS specifically advises taxpayers to file past-due returns even when they cannot pay the full amount owed. Filing can stop the situation from getting worse and allows you to address any balance due through the available payment and collection options.
Depending on your situation, getting current may involve:
- Identifying every missing tax return
- Obtaining prior-year income and tax records
- Preparing accurate returns for each delinquent year
- Addressing failure-to-file and other penalties
- Determining whether you owe taxes or are entitled to a refund
- Responding to IRS notices
- Setting up a payment arrangement or pursuing another tax resolution option
How Many Years of Back Taxes Do I Need to File?
The IRS may require several years of returns, particularly if you have repeatedly failed to file. Before preparing anything, determine which returns are outstanding and whether the IRS has already prepared a return for one or more years.
Gabaie & Associates can review your tax history and help determine what needs to be filed, even if you no longer have copies of your old tax documents.
What Happens If I Don’t File My Tax Returns?
The IRS can take action when taxpayers do not file required returns. You may receive notices informing you that the IRS has no record of a return.
If you continue not to respond, the IRS may prepare a Substitute for Return (SFR) using income information reported by employers, financial institutions, and other third parties.
That can create a serious problem. An IRS-prepared return may not include deductions, exemptions, or credits you could have claimed on your actual return. The IRS itself recommends filing your own return even after a substitute return has been prepared so that your account can be corrected based on your actual tax information.
What Is a Substitute for Return?
A Substitute for Return is a tax return the IRS prepares when you have not filed one. The IRS uses available income information to calculate your tax liability, but the return may not include deductions, credits, or business expenses you could have claimed.
If you receive a CP3219N Notice of Deficiency, the situation requires particular attention. The IRS says this notice gives you 90 days to file your past-due return or petition the U.S. Tax Court.
Don’t assume that an IRS-prepared return is the final word on what you owe.
Can I Still Get a Refund If I Didn’t File?
Possibly, but there are deadlines for claiming many refunds.
If you are owed a federal income tax refund, the IRS generally requires you to file within three years of the original return due date to claim it. Refunds can also be delayed when the IRS shows other returns as missing.
That means an unfiled return does not automatically mean you owe the IRS money. You could be entitled to a refund for one or more years.
What Penalties Apply to Unfiled Tax Returns?
The IRS may assess a failure-to-file penalty when a required return is filed after its due date.
For individuals and many business returns, the failure-to-file penalty is generally calculated as 5% of the unpaid tax for each month or partial month the return is late, up to 25% of the unpaid tax. Exceptions may apply, including when a taxpayer can establish reasonable cause for failing to file.
Interest and other penalties may also increase the amount owed.
That does not mean every penalty must simply be accepted. Depending on the circumstances, a taxpayer may have options for requesting penalty relief or otherwise addressing the balance after the missing returns are filed.
How Can a Tax Attorney Help With Unfiled Returns?
Getting years of missing tax returns filed requires understanding your tax history and what the IRS has already done.
Gabaie & Associates can help with the process from start to finish, including:
- Reviewing your IRS account and available tax records
- Identifying missing returns and tax periods
- Gathering wage, income, and other financial records
- Preparing and filing past-due returns
- Reviewing IRS-prepared substitute returns
- Addressing penalties and interest
- Responding to IRS notices
- Helping determine whether you qualify for a payment plan, Offer in Compromise, or other resolution
The goal is to get an accurate picture of your tax situation before deciding how to address any balance.
What If I Can’t Afford to Pay My Back Taxes?
You generally do not have to wait until you can pay the entire balance before addressing unfiled returns.
The IRS advises taxpayers to file past-due returns even when they cannot pay the full amount. Once your filing obligations are addressed, you may have several ways to deal with a balance you cannot pay immediately, including an installment agreement, an Offer in Compromise, or a temporary delay in collection.
Which option makes sense depends on factors such as:
- Your total tax debt
- Your income and monthly expenses
- Your assets and equity
- The age and status of your tax liabilities
Gabaie & Associates can review your financial situation and help determine which options are worth considering. You can also learn more about resolving IRS debt through the firm’s Offer in Compromise and IRS tax problems resources.
Can IRS Penalties Be Removed for Unfiled Returns?
Sometimes. Penalty relief is not automatic, but the IRS allows relief in certain circumstances.
For example, taxpayers may qualify for relief when they can show reasonable cause for failing to file or pay on time. The IRS evaluates reasonable cause based on the facts and circumstances of each case.
There is also an important recent change to the IRS penalty system. In 2026, the IRS introduced an Automatic Exemption from Penalty (AEP) for certain eligible taxpayers with a history of timely filing and payment. For eligible original returns beginning with tax year 2025 and certain quarterly returns, qualifying taxpayers may receive automatic relief from certain failure-to-file, failure-to-pay, and failure-to-deposit penalties.
AEP does not apply to every late return. An attorney can review the penalties on your account and determine whether other relief may be available.
What If the IRS Already Filed a Substitute Return for Me?
You should not assume the IRS’s calculation is the final amount you owe.
When the IRS prepares a substitute return, it generally relies on income information reported by employers, financial institutions, and other third parties. That return may not account for deductions, credits, exemptions, or business expenses you could have claimed.
Filing your own accurate return can allow the IRS to adjust the account based on your actual tax information.
This can be especially important for self-employed taxpayers and business owners with incomplete records, multiple income sources, or several years of missing returns.
What If I Am Self-Employed or Own a Business?
Unfiled returns can create additional problems for business owners and self-employed individuals.
Your tax obligations may include more than an annual individual income tax return. Depending on the business structure and circumstances, you may also have payroll, employment, information, or other tax filing requirements.
There can also be practical consequences to remaining behind. The IRS notes that self-employed taxpayers who do not file federal returns may fail to receive Social Security credits for their self-employment income. Unfiled returns can also make it harder to obtain financing because lenders often request copies of filed tax returns.
Why Work With Gabaie & Associates in Frederick?
For taxpayers in Frederick and throughout the surrounding area, Gabaie & Associates offers a local office for tax matters involving the IRS and other tax authorities.
The firm’s Frederick office is located at 5100 Buckeystown Pike, Suite 250A, Frederick, MD 21704.
Juda Gabaie combines experience as an accountant and tax attorney, giving the firm the ability to look at both the numbers and the legal issues surrounding a tax problem.
This can be helpful when unfiled returns are tied to penalties, an IRS notice, a substitute return, or an existing tax balance.
Frequently Asked Questions About Unfiled Tax Returns in Frederick
Can Gabaie & Associates help me if I have several years of unfiled returns?
Yes. The firm works with individuals and businesses dealing with past-due tax returns and related IRS problems. The first step is to determine which returns are missing and what information the IRS has on your account.
Do I have to pay my entire tax bill before I can file?
No. The IRS specifically advises taxpayers to file past-due returns even when they cannot pay the full amount.
Where is the Gabaie & Associates office in Frederick?
The Frederick office is located at 5100 Buckeystown Pike, Suite 250A, Frederick, MD 21704. Appointments should be arranged in advance rather than walking in.
Get Help With Unfiled Tax Returns
Leaving old tax returns unfiled rarely makes the underlying problem easier. Filing the missing returns gives you a clearer picture of what you owe, what the IRS believes you owe, and which resolution options may be available.
If you live or operate a business in Frederick and have unfiled tax returns, call Gabaie & Associates at (410) 358-1500 or contact the firm online to schedule a consultation.
