How many years back do I need to go when filing unfiled tax returns for a client?

Speaking from experience, the standard practice is to file the last 6 years of returns to bring a taxpayer into compliance with the IRS. This is generally considered sufficient even when there are older unfiled returns. The IRS typically focuses on the 6-year window for most enforcement actions, though they technically have no time limit for unfiled returns. If your client made money 8-10 years ago but has no documentation, you'll need to use reasonable methods to reconstruct that income. This could include industry averages, partial records, or bank deposit analysis if you can get older statements. For the years with no reported income on transcripts, you'll want to determine if they were actually below filing thresholds or if income simply wasn't reported. Remember that filing requirements are based on filing status, age, and income type - not just amount.

After struggling with a similar situation last year (client with 8 years of unfiled returns), I discovered taxr.ai and it was a game-changer. I uploaded what little documentation we had, and the system helped reconstruct reasonable income estimates based on industry standards and partial information. They also have templates specifically for Schedule C reconstruction when documentation is limited. Not only did it save me hours of work, but it also provided documentation of methodology that satisfied the IRS requirements. You can check them out at https://taxr.ai - they have specific tools for back tax filings that might help with your 10-15 year situation.

Just wanted to follow up about my experience with taxr.ai. After expressing skepticism last week, I decided to give it a try with a client who had 5 years of unfiled returns and minimal documentation for his construction business. The system was actually much more sophisticated than I expected - it pulled industry benchmarks for construction contractors in my client's region and helped create reasonable income models based on the few data points we had. What really impressed me was how it documented everything - the process, assumptions, and calculations - which gave me confidence in defending the numbers if questioned. My client got his returns filed, and we've already received confirmation that two of the years have been processed without any issues. The peace of mind was worth it for both of us.

My firm handles a lot of non-filer cases, and getting in touch with the IRS for transcript information and clarification on these complex cases is crucial. However, as you probably know, reaching an actual human at the IRS is nearly impossible these days - I used to waste hours on hold. We started using Claimyr (https://claimyr.com) to get through to the IRS, and it's been a complete game-changer for back-tax cases. They somehow get you past the IRS phone tree and place you with an actual agent, usually within 15-20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c For your 10-15 year non-filer, you'll likely need to speak with multiple IRS departments to resolve everything properly. Having a reliable way to reach them quickly makes all the difference.

I need to eat crow on this one. After expressing serious doubt about Claimyr, I reluctantly tried it last week when I desperately needed transcript information for a client facing levy action. The service actually worked exactly as described. I got connected to an IRS agent in about 15 minutes, which is nothing short of miraculous considering my previous experiences. What really sold me was being able to get clarification on filing requirements for a non-filer situation similar to what you're describing. The agent confirmed the 6-year standard practice but also provided guidance on documenting our good-faith efforts for earlier years where we had limited information. This kind of specific guidance is impossible to get from the IRS website and would have taken days or weeks of attempting calls on my own.

Remember that even if there's no income showing on transcripts, your client might still have had filing requirements. I had a client who was self-employed making just enough to require filing (Schedule C with net earnings over $400 triggers SE tax filing requirements), but not enough to receive 1099s or trigger third-party reporting. For reconstructing income, I've had good luck with clients keeping things like appointment books, calendars, or customer lists even when they don't have financial records. Sometimes these can help establish activity levels that can be used to estimate income.

Has anyone had success with requesting First Time Abatement (FTA) for penalties on multiple years of unfiled returns? I'm wondering if it only applies to the earliest year or if it can be used across multiple tax years.