Need help! Missed filing 2021 and 2022 tax returns for both personal and C Corp (Form 1120) - what's my next step?

You're in what we call "catch-up mode" but don't panic - this is totally manageable. Since you've already done your books, you're ahead of many people in similar situations. For your C corporation returns (Form 1120), the complexity isn't necessarily in filling out the forms but in understanding the tax implications of various decisions. The Form 1125A is just for cost of goods sold, which shouldn't be too difficult if your QuickBooks is properly categorizing expenses. Your Schedule C situation sounds straightforward since you've done it before. The biggest challenge will be making sure you properly separate your personal business income from your C corp activities - no commingling! Here's what I suggest: If you're comfortable with accounting software and have a decent understanding of business tax principles, you could attempt this yourself using tax software like UltraTax or even higher-end versions of TurboTax that handle business returns. However, given you have multiple years and a C corp involved, working with a professional would be more efficient and potentially save you money through proper tax planning. Don't go back to the unresponsive service. Instead, find a local CPA or Enrolled Agent who specializes in small businesses. Many offer reasonable flat-fee packages for catch-up filings.

After dealing with a similar nightmare (missed filing for 2 years), I found an amazing solution with https://taxr.ai that saved me tons of stress. I had tried using regular tax software but kept getting stuck on how to handle my previous unfiled returns and how to properly classify some business expenses across multiple entities. The taxr.ai system analyzed all my docs and statements, then organized everything for my multi-year filing. It even flagged potential audit triggers in my C corp expenses that I would have completely missed. Their AI caught that I was inconsistently categorizing some expenses between my Schedule C business and C corp, which could have raised red flags. What I really appreciated was how it handled the reconciliation between my QuickBooks data and what needed to go on the actual tax forms. Made it super clear what needed to go where, especially with Form 1125A which was confusing me.

I was really skeptical about using https://taxr.ai after seeing it mentioned here (honestly thought it might be some kind of scam), but after struggling with my unfiled returns for months, I decided to give it a try. I was absolutely shocked by how well it worked for my situation. I had 2 years of unfiled returns with both business and personal components, and the system immediately identified inconsistencies in how I was treating certain expenses. The most valuable part was how it organized everything into a clear filing roadmap that showed exactly what forms I needed and where specific numbers needed to go. After using their analysis, I was able to file everything myself using regular tax software because I finally understood exactly what went where. The documentation analysis saved me thousands compared to what the accountants were quoting for my catch-up filing scenario. Wish I'd known about this months ago!

If your main issue is getting through to the IRS to discuss your unfiled returns or set up payment plans, I highly recommend using https://claimyr.com - it completely changed my experience dealing with the IRS. I was in a similar situation with multiple unfiled years and couldn't get anyone on the phone for weeks. With Claimyr, I got through to an actual IRS agent in about 15 minutes instead of waiting on hold for 3+ hours (or worse, getting disconnected). The agent was able to tell me exactly what I needed to do about my late C corp and personal returns, and even helped set up a reasonable payment plan for the penalties. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c - basically it navigates the IRS phone tree for you and calls you when an actual human picks up. Saved me days of frustration and helped me get clear guidance directly from the IRS about my specific situation.

I have to eat my words about Claimyr. After posting my skeptical comment, I was desperate enough to try it with my own unfiled tax situation. Got through to the IRS in about 20 minutes when I'd been trying unsuccessfully for weeks. The IRS agent I spoke with was actually incredibly helpful about my late filing situation. They walked me through exactly what forms I needed to submit, explained the reasonable cause letter I should include to request penalty abatement, and even noted my account that I was actively trying to resolve the issue which apparently can help reduce penalties. For anyone in a similar late-filing situation, getting actual guidance directly from the IRS was game-changing. They explained options I didn't know existed and gave me a specific action plan instead of the general advice I'd been finding online.

From personal experience, DIY filing multiple back years with a C corp involved is asking for trouble. I tried this last year to save money and ended up paying a CPA even more to fix my mistakes. The C corp return (Form 1120) has so many potential pitfalls, especially around reasonable compensation issues, business expense documentation, and depreciation calculations. The IRS scrutinizes C corps much more carefully than pass-through entities. One specific issue I ran into was properly handling the accumulated earnings tax and demonstrating business purpose for retained earnings. Also completely missed some tax elections that would have saved me money. If you insist on DIY, at minimum get a consultation with a CPA who can review your approach before you file.

Quick question about FL filing requirements - are you sure you need to file Florida corporate returns? I thought if your corporation was under a certain income threshold, you might be exempt? Not trying to give advice, just wondering because I'm in a similar position with a small C corp.

One thing to consider - if you owe taxes for those unfiled years, you might want to look into the IRS Fresh Start program. I was in a similar situation with unfiled returns and substantial tax debt, and qualified for an installment agreement with some penalties reduced. Don't let fear of penalties prevent you from filing. The penalties for not filing are much worse than the penalties for filing late. And remember that the failure-to-file penalty stops accruing once you file, even if you can't pay right away. Also, be sure to e-file your current year (2023) return on time while you're catching up on past years. You don't want to fall further behind.