Bilingual Enrolled Agent serving taxpayers in Arizona and nationwide.
File even when you cannot pay in full
The IRS advises taxpayers to file all required returns even when full payment is not possible. Filing compliance is commonly necessary before the IRS will consider many collection alternatives.
Determine which returns are actually required
Do not begin by assuming every missing calendar year requires the same return. Review IRS wage and income data, account transcripts, business records and prior filing history. An entity, trust, payroll or information-return obligation may involve different forms.
A substitute return may not be the final answer
If a taxpayer does not file, the IRS may prepare a substitute return based on available information. It may not include all deductions, credits or filing choices supported by the taxpayer’s records. Filing an accurate delinquent return may allow the account to be reconsidered.
Organize the project
Use one folder for each year and preserve the records supporting income and deductions.
- IRS wage and income transcripts
- Bank and business records
- Prior-year depreciation schedules
- Estimated-tax and extension payments
- Health-insurance and retirement documents
- State tax information
Frequently asked questions
Should I wait to file until I can pay?
Generally, no. The IRS advises filing required returns even when you cannot pay in full. Filing and payment are separate obligations.
Can the IRS prepare a return for me?
The IRS may prepare a substitute return using available information. A taxpayer may still need to file an accurate return to claim supported deductions, credits or other correct treatment.
This educational article provides general information and is not legal or tax advice. Reading it does not create a professional-client relationship.