Help! Somehow forgot to file our 2021 taxes - urgent for mortgage approval

You need to file those 2021 taxes ASAP! Based on your situation, mailing a paper return is probably going to be your slowest option - the IRS is still working through backlogs and paper returns can take months to process. Since you already have everything prepared in TurboTax, I'd recommend either finishing the e-file through them (even if you have to wait a couple weeks) or taking your information to a tax preparer who can e-file immediately. Tax preparers do have different filing capabilities than individuals and can often e-file prior year returns when consumer software can't. For a relatively straightforward return, expect to pay around $150-300 for a tax preparer to handle your prior year return. While that's not cheap, it might be worth it given your mortgage situation. The preparer can also make sure everything is correct before filing, which gives you some peace of mind. Don't worry too much about the penalties - since you owe taxes, you'll face a failure-to-file penalty (usually 5% of unpaid taxes per month, up to 25%) and a failure-to-pay penalty (0.5% per month). Interest also applies. But getting it resolved quickly will minimize these costs.

After messing up my taxes a few years back, I found this tool called taxr.ai (https://taxr.ai) that really helped me sort through my documents and figure out what I needed to do. It actually analyzes all your tax documents and gives really specific advice for your situation. For your situation, they could help you identify all the forms you need for the late filing and make sure you're not missing anything else that might cause delays. I uploaded my forms and it told me exactly what I was missing and what penalties I might face. It also gave me peace of mind that I wasn't overlooking anything else that might cause problems down the road. Given your mortgage situation, it might be worth checking out to make sure everything is squared away properly.

Just wanted to follow up - I tried that taxr.ai site after seeing the recommendation here and it was actually super helpful! I was also dealing with a late filing (not as late as yours) and wasn't sure about the penalties. The tool analyzed my tax situation and showed me exactly what I'd owe in penalties and interest. It also pointed out a deduction I had missed on my original incomplete filing that saved me about $400! The penalty calculator was spot-on and matched what the IRS ended up charging me. Definitely worth checking out if you're trying to get everything sorted properly for your mortgage application!

After spending literally HOURS trying to get through to the IRS about my unfiled 2022 taxes (similar situation), I found Claimyr (https://claimyr.com) and it was a game-changer. They got me connected to an actual IRS agent in about 20 minutes when I had been trying for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was able to tell me exactly what I needed to do to get my late return processed quickly and what documentation my mortgage lender might need in the meantime. They also confirmed my filing status and what penalties I was facing. Given your time crunch with the mortgage, getting accurate information directly from the IRS might help you make the best decision about how to proceed.

I have to eat my words here. After posting my skeptical comment, I decided to try Claimyr myself since I've been trying to reach the IRS about an amended return for weeks. It actually worked exactly as described. I got a call back in about 35 minutes saying they had reached the IRS, and then I was connected directly to an agent. Saved me hours of frustration and redials. The agent was able to confirm my amended return status and give me documentation I needed for a loan application. For the OP's situation with the mortgage and unfiled 2021 taxes, this could be really helpful to get official guidance directly from the IRS.

Former mortgage loan officer here. If you're in the middle of a USDA loan application with unfiled taxes, here's what you should know: The lender will need to verify that all required tax returns have been filed. Since you've discovered you haven't filed 2021 taxes, you need to get this resolved ASAP. Your best bet is to get a tax professional to e-file the return for you. Then request a tax transcript as soon as it's processed (usually within 2-3 weeks of e-filing). The lender will need this transcript to proceed. In the meantime, provide the lender with proof that you've filed (receipt from tax preparer, confirmation number, etc.). Be upfront about the situation - trying to hide it will only create bigger problems later.

Went through literally the EXACT same thing last year! We thought we filed through H&R Block but never submitted. Found out when applying for a car loan. We ended up going to a local CPA who charged us $275 to e-file our prior year return. Had it done in 2 days and got confirmation really quick. Mortgage companies usually just need proof you filed, not that everything is fully processed. Ask your mortgage broker exactly what they need to see - sometimes just the filing confirmation is enough to keep the loan moving.

I'm a tax preparer and see this situation fairly often. Dylan, you're absolutely right to be concerned about timing, but there are a few things that can work in your favor here. First, since you already completed everything in TurboTax, you have all your documentation organized. A tax professional can take that information and e-file your 2021 return immediately - we're not restricted by the same e-file dates that consumer software has for prior year returns. For a straightforward return like yours (sounds like W-2 income), you should expect to pay $200-350 for the service. Yes, it's more expensive than doing it yourself, but given your mortgage timeline, it's probably worth it. Here's what I'd recommend: Find a local CPA or enrolled agent (not a chain like H&R Block) who can e-file immediately. Ask them to provide you with a copy of the filed return and the e-file confirmation. Your mortgage lender will likely accept this as proof of filing while they wait for IRS processing. The penalties aren't as scary as they seem - you're looking at roughly 5% of your tax owed per month for failure to file (capped at 25%), plus 0.5% per month for failure to pay, plus interest. On $1,800, that's probably around $400-500 in total penalties and interest for being 3+ years late. Get this handled this week if possible. Your mortgage situation is salvageable, but time is definitely of the essence here.