IRS Holding My Refund Due to Unfiled 2022 Return - File Separately or Amend?

You'll need to file 2022 as a completely separate return - not as an amendment to your 2023 return. I went through this exact situation last year when they held my refund because I hadn't filed 2021. Once I submitted my missing 2021 return, they released my 2022 refund about 3 weeks later without me having to do anything else. Each tax year stands alone, so you can't combine or amend one year to include another. I'm grateful I learned this when it happened to me - saved me from making a costly mistake!

I would strongly recommend not just e-filing your 2022 return, but also calling the IRS to alert them that you've submitted the missing return. This could potentially expedite the release of your 2023 refund. However, getting through to an IRS agent can be nearly impossible these days... I spent approximately 4 hours on hold last month before giving up. I eventually used Claimyr (https://claimyr.com) and got connected to an agent in about 15 minutes. They confirmed receipt of my previously missing return and released my hold within the same call. Just my experience, but it might save you weeks of waiting.

According to the IRS website (specifically their "Prior Year Returns" section), you absolutely must file 2022 as a separate return. The IRS doesn't allow combining tax years or adding previous years to current returns. The notice you received is part of their Refund Hold Program which automatically flags current year refunds when prior year returns are missing. I've seen too many people try workarounds that just create bigger problems down the road.

This situation is similar to what happens with student loan defaults or child support arrears - one financial obligation affects another. For your 2022 return, since you're filing late, you'll want to understand exactly what's on your account transcript. I used https://taxr.ai to analyze my transcript when I was in a similar situation. It showed me exactly why my refund was being held and identified that I had a failure-to-file penalty that wasn't immediately obvious. The tool explained each code on my transcript and helped me understand what I needed to address. It's like having a tax pro look over your transcript without paying hundreds.

I'm not entirely convinced this is as simple as just filing the 2022 return. In exactly 3 similar cases I've seen, there were additional complications. One person had their 2023 refund held for 63 days after filing their missing 2022 return because it triggered a "verification" process. Another had to call exactly 4 times before the hold was manually released. I'm concerned there might be penalties or interest that could offset your expected refunds as well. Have you calculated the failure-to-file penalties that might apply?

I was in a similar situation and over-prepared by bringing every possible document to resolve it. You definitely need to file 2022 separately - not as an amendment. Have you calculated if you'll owe penalties for filing late? Did your notice specifically say they're holding your refund, or did it use different terminology? Did the notice include a deadline for when you need to file 2022 to avoid further complications? What software did you use for your 2023 return, and can you use the same for 2022?

As someone who works adjacent to tax preparation, I see this situation more often than you'd think. You absolutely need to file 2022 as a separate return - not as an amendment to 2023. Think of tax years like separate books in a series - you can't just add chapters from book 2 into book 3! 😂 But seriously, I understand how frustrating this is. Most people don't realize the IRS has gotten much more sophisticated at cross-referencing missing returns. I've seen clients wait months for refunds because they didn't address a prior year issue promptly.

File 2022 separately. No amendments needed. Each tax year stands alone. Use tax software that handles prior years. Print and mail if necessary. Include your notice number. Keep copies of everything. Expect 6-8 weeks processing time. Your 2023 refund will be released after 2022 is processed. No further action needed typically.

I just went through this! The process is actually pretty straightforward: • You need to file 2022 as a completely separate return • You CANNOT amend your 2023 return to include 2022 information • The IRS processes each tax year independently • Once your 2022 return is processed, they should automatically release your 2023 refund • You might need to pay a late filing penalty for 2022, even if you're due a refund I had no idea the IRS automatically held current refunds for unfiled prior years! The tax system is way more interconnected than I realized.