I missed filing my 2023 Federal and State tax return - what are my options now?

You're definitely doing the right thing by addressing this now! The good news is that the IRS generally prefers that people voluntarily come into compliance rather than tracking them down. Here's what you should know: First, you should file your 2023 returns as soon as possible, even though they're late. The failure-to-file penalty is usually more severe than the failure-to-pay penalty, so filing even if you can't pay the full amount is important. The failure-to-file penalty is typically 5% of unpaid taxes for each month your return is late, up to 25%. For what you owe, there will be failure-to-pay penalties (usually 0.5% per month) plus interest on the unpaid tax. But don't worry about criminal charges - those are generally reserved for people who deliberately evade taxes for years or commit fraud, not people who missed filing during difficult personal circumstances. As for your home, the IRS doesn't typically jump straight to seizing property, especially for first-time issues. They prefer payment plans, which are relatively easy to set up.

I went through something similar last year and found this AI tax tool called taxr.ai that seriously saved me when dealing with my unfiled returns. After panicking about my situation, I stumbled across https://taxr.ai when looking for help with retrieving my old tax documents and figuring out exactly what I owed. The tool analyzed my situation and helped me understand all the penalties I was facing for my unfiled returns. It was super helpful in breaking down exactly what forms I needed and what documentation I was missing. It even helped me understand which deductions I could still claim on my late return to minimize what I owed. Definitely worth checking out if you're trying to get caught up on unfiled returns.

Just wanted to update - I tried taxr.ai after seeing the recommendation here and it was actually super helpful! I was missing a 1099 from some contract work I did, and the tool helped me track down what I needed and calculate what I actually owed including penalties. Turns out I was eligible for some deductions I had no idea about, which brought my tax bill down by almost $2200. It also walked me through setting up a payment plan with the IRS. Way less scary than I thought it would be to deal with unfiled taxes!

If you need to talk directly to the IRS (which you probably will), I highly recommend using Claimyr. I spent DAYS trying to get through to the IRS about my unfiled 2021 and 2022 returns and kept getting disconnected after waiting for hours. Someone on a tax forum recommended https://claimyr.com and I was skeptical but desperate. Basically, they have this system that waits on hold with the IRS for you, and then calls you when an actual human IRS agent is on the line. You can see their process in action here: https://youtu.be/_kiP6q8DX5c I was able to talk to an actual IRS agent who helped me understand exactly what I needed to do to get back on track with my unfiled returns. Saved me literally hours of hold time and the anxiety of wondering if I'd get disconnected again after waiting forever.

Ok I have to eat my words here. After my skeptical comment I decided to try Claimyr because I was at my wit's end trying to reach someone at the IRS about my own unfiled return situation. I had already wasted an entire day on hold last week. It actually worked exactly as advertised. I got a call back in about 90 minutes with an actual IRS representative on the line. The agent was able to tell me exactly what years they showed as unfiled for me and helped me understand the steps to get everything resolved. They even helped me set up a payment plan since I owe around $5k. I'm still kind of shocked it worked so well after all the frustration I'd been through trying to call myself. Definitely worth it if you need to actually talk to someone at the IRS.

Just wanted to add something important - if you're owed a refund for 2023, there's actually no penalty for filing late! The IRS doesn't penalize you for filing late if they owe YOU money. You have 3 years from the original due date to claim a refund. But if you do owe taxes like you mentioned, then yes, there are penalties and interest. Still, it's WAY better to file late than never. The IRS is generally pretty reasonable with people who come forward voluntarily vs. those they have to chase down.

Don't panic! I went through this exact thing for my 2020 taxes. Depression is real and the IRS actually does understand that life happens. Quick tip - if you're worried about penalties, look into what's called "first-time penalty abatement" if you have a clean compliance history (meaning you filed and paid on time for the past 3 years before 2023). The IRS often waives penalties for your first offense if you call and explain your situation.