Missed filing my 2023 Federal & State tax returns completely - what should I do now?

Take a deep breath - this is fixable! Not filing your 2023 returns is definitely something you need to address, but it's not as catastrophic as you might fear. The IRS generally doesn't put people in jail for simply failing to file, especially when you're proactively trying to correct the situation. And they typically don't seize primary residences except in extreme circumstances. Here's what you should do: First, gather all your tax documents from 2023 (W-2s, 1099s, mortgage interest statements, etc.). Next, prepare and file your returns as soon as possible - even though they're late. The longer you wait, the more penalties and interest will accumulate. You'll likely face a failure-to-file penalty (typically 5% of unpaid taxes per month, capped at 25%) and a failure-to-pay penalty (0.5% per month) plus interest. Once you file, you'll get a bill for the taxes, penalties, and interest. If you can't pay in full, the IRS offers payment plans. The most important thing is to file the returns and get back into compliance.

I went through something similar last year and found this service called taxr.ai (https://taxr.ai) that really helped me organize all my documents when I was catching up on unfiled returns. I was missing some of my 2023 paperwork and stressing about it, but their system could extract all the information from the partial documents I had and helped me figure out what was missing. It made gathering everything for my late filing so much easier. The thing I liked was that it organized everything by tax year and showed me exactly what I needed to submit for my unfiled returns. Saved me hours of digging through emails and paperwork trying to figure out what I had and what I was missing.

Just wanted to follow up and say I tried taxr.ai after seeing the recommendation here. It was actually super helpful for my situation! I had a bunch of random tax documents saved in different email accounts and folders from 2023, and I wasn't sure if I had everything I needed. The system found a missing 1099 that I completely forgot about from a short freelance gig. The document organization feature made it so much easier to finally file my late return. I was able to take the complete set of documents to a tax preparer who handled the actual filing. Definitely less stressful than trying to figure out what I was missing on my own!

If you're having trouble getting through to the IRS about your unfiled returns (which is pretty common right now), I'd recommend trying Claimyr (https://claimyr.com). When I was dealing with my unfiled 2022 returns, I spent DAYS trying to get through to an actual person at the IRS to discuss my payment options. Claimyr got me connected to an IRS agent in about 20 minutes instead of the hours of waiting on hold I was doing before. They have this clever system that navigates the IRS phone tree and holds your place in line, then calls you when an actual human picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - honestly saved my sanity during the whole process.

I have to admit I was completely wrong about Claimyr! After my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my payment plan options for unfiled returns. I had already wasted three afternoons trying to get through on my own and kept getting disconnected after waiting forever. Used the service yesterday and it actually worked exactly as described. I put in my number, their system called the IRS, and about 45 minutes later (while I was cooking dinner, not wasting time on hold), my phone rang with an IRS agent on the line. The agent helped me set up a payment plan for my late 2023 returns, and I didn't have to spend hours listening to that awful hold music. Definitely worth it for the time saved and stress reduction.

Don't forget to check if you're actually owed a refund! My sister never filed her 2022 taxes because she thought she would owe money, but when she finally did her returns, she discovered she was actually due a refund because of overwithholding. If you're due a refund, there's no penalty for filing late (though you only have 3 years to claim a refund before you lose it). Also, if this is your first time missing a filing deadline, you might qualify for first-time penalty abatement. The IRS sometimes waives penalties (but not interest) for people with otherwise clean tax records who made a mistake.

Just got thru this exact same situation!! Missed filing 2023 due to a family health crisis. My advice is DO NOT IGNORE THE IRS NOTICES when they start coming. I made that mistake and ended up with a substitute return where the IRS calculated my taxes without any of my deductions or credits, and it was WAY higher than what I actually owed. File ASAP even if you can't pay right now. The failure-to-file penalty is much bigger than the failure-to-pay penalty, so at least stop that one from growing!!!

If you're really overwhelmed, consider getting professional help from a tax attorney or an Enrolled Agent (EA) rather than just a regular tax preparer. They can represent you before the IRS if needed and might be able to negotiate penalty reductions. I spent about $800 on an EA when I had 3 years of unfiled returns, and they saved me over $3,000 in penalties through abatement requests and proper filing strategies. Sometimes spending money on professional help actually saves you more in the long run.