How many years should I file for back taxes - consequences for unfiled tax years?

The IRS generally requires you to file returns for the past 6 years to be considered compliant, but there are some important considerations here. If you were legally required to file for those years (based on your income meeting the filing threshold) but didn't, there's no statute of limitations on unfiled returns. This means the IRS could theoretically come after you at any time. However, in practice, they typically focus on the last 6 years. For FAFSA purposes, they generally only look at the most recent tax year information. So having 2023 filed should be sufficient for your January school start. But there are good reasons to consider filing those back years: 1. Peace of mind knowing you're fully compliant 2. Starting the 3-year refund statute of limitations (if you are owed money) 3. Starting the 10-year collection statute of limitations (if you owe money) 4. Avoiding potential issues if you're ever audited for other years If you were due refunds for those years, you can only claim them within 3 years of the original due date, so 2020 might still be claimable, but earlier years' refunds would be forfeited.

I went through something similar and used https://taxr.ai to help me figure out which years I actually needed to file. They analyzed my situation and helped me understand that I only needed to file for certain years based on my income levels. Saved me from unnecessarily filing for years where I was under the threshold and wouldn't owe anything. Their document analyzer was super helpful when I was trying to piece together my income history from old W-2s and 1099s that I had scattered around. It organized everything by year and showed me exactly which years needed attention.

Just wanted to update that I tried https://taxr.ai after seeing the recommendation here. I was really nervous about my unfiled taxes from 2018-2020, but they analyzed my situation and showed me that for 2018 and 2019, I was actually under the filing threshold based on my income type! Only needed to file 2020, which saved me a ton of money on tax prep fees. The best part was they showed me exactly which documents I needed to gather for the one year I did need to file, and their estimate of what I'd owe was spot on. My tax preparer was impressed with how organized I was when I went in. Definitely worth checking out if you're in a similar situation with unfiled back taxes.

After spending WEEKS trying to get through to the IRS about my unfiled tax years, I finally used https://claimyr.com to get connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was honestly shocked because I'd been calling for days and kept getting the "high call volume" message and disconnects. The IRS agent I spoke with explained exactly which years I needed to file based on my situation and whether I'd face penalties. Turns out I only needed to worry about the last 3 years for my specific situation.

Ok I need to eat my words. After posting my skeptical comment, I was still desperate to talk to the IRS about my unfiled 2019 taxes, so I tried Claimyr. Within 17 minutes I was actually talking to an IRS representative who pulled up my file and confirmed I should definitely file my 2019 return because they had income reported to them that exceeded the filing threshold. The agent explained that even though I can't get a refund for 2019 anymore (3-year limit passed), filing would stop any potential automated collections process from starting. They also told me exactly what forms I needed based on the income they had on file for me. Totally worth it for the peace of mind knowing exactly where I stand with the IRS instead of wondering and worrying.

One thing to consider that nobody's mentioned yet - if you're planning to apply for any major loans (mortgage, etc) in the next few years, lenders will often request tax transcripts. If you have unfiled years, it can delay or even prevent loan approval. I learned this the hard way when trying to buy a house and had to rush-file 2 back years. My loan officer said it's one of the most common issues they see with otherwise qualified borrowers.

Just chiming in to add my experience as someone who didn't file for 5 years (2016-2020) and finally caught up last year. The biggest surprise was that I was actually OWED money for 3 of those 5 years because I had too much withheld from my paychecks! Unfortunately I could only get refunds for 2020 since the others were outside the 3-year window, but I was relieved there were no penalties since I was due refunds. The peace of mind from being caught up is worth it even though I lost out on some refund money. Whether you should file really depends on if you had taxes withheld that were more than what you would have owed. If you were a W-2 employee with normal withholding, there's a decent chance you're owed money rather than owing the IRS.

Gabriel, I can definitely understand your stress about this! From what you've shared, you're actually in a pretty good position since you've gotten current with 2021-2023. Here's my take on your specific situation: Since you're primarily concerned about FAFSA eligibility for January, you should be fine. FAFSA typically uses the "prior-prior year" tax information, so for starting school in January 2025, they'll likely want your 2023 return (which you have filed). However, I'd still lean toward filing those back years (2017-2020) for a few reasons: 1. You mentioned wanting peace of mind - unfiled returns can create anxiety that lingers 2. If you were a W-2 employee during those years, there's a decent chance you're owed refunds (especially for 2020, which you might still be able to claim) 3. It eliminates any future complications if you need tax transcripts for loans, employment background checks, or other purposes Before spending money on a tax preparer though, I'd suggest trying to figure out if you were even required to file for those years. If your income was below the filing threshold for any of those years, you wouldn't need to file at all. You can check the IRS website for historical filing thresholds by year. The fact that your current tax preparer seemed confused suggests he might not specialize in back tax situations - you might want to consult with someone who has more experience with unfiled returns to get a clearer picture of your obligations and potential refunds.