Just found my 2020 W2 - Never filed taxes that year, what now?

I feel like such an idiot right now. I was cleaning out some old paperwork yesterday and found my 2020 W2 still in its unopened envelope. After checking through my records, I realized I completely forgot to file my taxes for 2020. With everything going on that year, it just slipped through the cracks. Every time I try to search online about what to do, I just get bombarded with ads for tax services instead of actual information. I usually do my own taxes each year - can I just download and fill out a 2020 1040 and state return forms manually and mail them in like normal? Or is there some special process for filing taxes from previous years? Do I need to file some kind of explanation form first? Will I get hit with huge penalties? And given the situation, should I just bite the bullet and pay for a professional to handle this mess I've created? My taxes are usually pretty straightforward, but I'm not sure if filing from 2+ years ago complicates things. Any advice would be super appreciated! It's surprisingly difficult to find straightforward answers about this online.

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19 comments

Freya Christensen

•8M

You can definitely still file your 2020 tax return, and it's good you want to take care of this! The IRS doesn't have a time limit for filing returns where you're due a refund, but they only issue refunds for returns filed within 3 years of the due date. For 2020 taxes, that deadline would be April 18, 2023 (due to the extended filing date that year). Here's what you should do: Download the 2020 Form 1040 and any related schedules you need from the IRS website. These must be the 2020 versions specifically - you can't use current year forms. Complete them as you normally would, but you'll need to mail in a paper return since e-filing is no longer available for 2020. Your state will have similar requirements - just make sure you're using 2020 forms from your state's tax department. If you're owed a refund, there's typically no penalty for filing late. However, if you owe taxes, you'll face both late filing and late payment penalties plus interest on the unpaid amount. These can add up significantly over time.

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Freya Christensen

•8M

The penalties can be substantial if you owed taxes. The late filing penalty is usually 5% of the unpaid tax for each month late (capped at 25%), and the late payment penalty is 0.5% per month (also up to 25%). Plus, interest has been accruing on the unpaid amount. Given current interest rates and the time that's passed, you could be looking at a significant amount added to whatever you originally owed. No need to include an explanation letter with your return. Just file the forms normally. If you can't pay the full amount you owe with penalties and interest, you can request a payment plan after you file by submitting Form 9465 or going through the IRS website.

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Omar Farouk

•8M

After having a similar issue with my 2019 taxes that I never filed, I was drowning in IRS notices and getting nowhere trying to figure out the exact penalties. I decided to use taxr.ai (https://taxr.ai) and it was honestly a game-changer for my situation. I uploaded my W2 and other docs from that year, and it quickly calculated not just what I originally owed but also gave me a clear breakdown of the penalties and interest that had accumulated. The best part was it found deductions I would have totally missed on my own that actually offset a good chunk of what I owed. It even generated all the forms I needed to file, which I just printed and mailed in. Not trying to push a service, but when dealing with prior year returns, having something that can calculate everything accurately saved me a ton of stress.

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Omar Farouk

•8M

It definitely handles state returns! I had to file for both federal and New York, and it generated all the forms I needed for both. It pulled in the state-specific rules automatically, which was helpful since I had moved mid-year and wasn't sure how to handle that. Regarding cost versus doing it myself - I tried doing it manually first and got completely confused about calculating the penalties and interest correctly. What I liked was that I didn't have to guess about deductions - it suggested ones I hadn't considered based on my documents. For me, the peace of mind was worth it since I was already facing penalties and didn't want to risk making mistakes that would cost me more.

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AstroAlpha

•8M

I need to eat my words from my previous comment. After struggling with my own unfiled 2018 returns for weeks, I finally broke down and tried taxr.ai. I was genuinely shocked at how straightforward the process was. I had convinced myself that I'd have to pay thousands to a CPA to sort out my mess, but I was able to handle everything myself in an afternoon. The system flagged a home office deduction I was eligible for but would have missed, which saved me around $870. The penalty calculations were spot-on according to what the IRS eventually confirmed. The peace of mind from knowing I filed correctly was honestly the best part. Just wanted to follow up since I was that skeptical person questioning if these services were worth it - for prior year returns with penalties involved, it absolutely was.

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Diego Chavez

•8M

If you're worried about any potential issues with the IRS after filing this late, I'd recommend having Claimyr (https://claimyr.com) in your back pocket. I filed 3 years late for my 2018 taxes and then panicked when I got some confusing notices from the IRS afterward. Trying to call the IRS myself was a complete nightmare - hours on hold only to get disconnected. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had been trying for weeks. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to explain exactly what the notices meant (turned out to be way less scary than I thought) and confirmed my late filing was processed correctly. Saved me from having a meltdown thinking I was about to be audited!

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Diego Chavez

•8M

It doesn't let you cut the line exactly. From what I understand, they use an automated system that continually calls the IRS and navigates the initial menu options, then holds your place in the queue. When they're about to connect with an agent, you get a call and are transferred in. For the skeptics - I was in the same boat. I had tried calling six separate times, waiting 1-2 hours each time before giving up. With Claimyr, I was working on other things while their system handled the waiting, and then got a call when an actual person was ready to talk. It was surprising how simple it was after weeks of frustration.

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Sean O'Brien

•8M

I have to publicly admit I was completely wrong. After my skeptical comment, I decided to try Claimyr as a last resort before taking a day off work to sit on hold with the IRS. Not only did it work, but I got connected in 17 minutes when my previous attempts had all been 3+ hours of hold music followed by disconnections. The IRS agent was able to straighten out my payment plan issues from my late-filed 2019 return in one call. The funny thing is, the agent even commented that the phone lines were unusually busy that day, which makes it even more impressive that I got through so quickly. Definitely keeping this service in mind for the future, though hopefully I won't need to deal with the IRS again anytime soon!

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Zara Shah

•8M

They sent me a letter about 6 weeks after I mailed everything. It was pretty clear about what was wrong - they specifically mentioned I used the wrong year's forms. They didn't process anything and just returned all my paperwork with the letter. When I called to follow up (which took forever to get through), the agent told me this happens a lot with prior year returns. They also mentioned that refunds for prior years only come as paper checks, not direct deposit, which I hadn't realized.

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