What happens if I didn't file my 2021 taxes yet?

Thank you so much for explaining! I actually think I might have had too much withheld from my paychecks that year, so I might be owed a refund? Does that mean I won't have any penalties at all? And do I just file normally using tax software, or is there something special I need to do for a late return?

If you're owed a refund, there are no penalties for filing late! That's right - the IRS doesn't penalize you when they're holding YOUR money. You can simply file your 2021 return like normal using any tax software, though not all tax preparation websites keep prior year returns available. Look for software that specifically offers "prior year returns" - TurboTax, H&R Block, and TaxAct all offer this service. Just be aware that if you're owed a refund, you must claim it within three years of the original due date, or you forfeit that money. For 2021 returns, your deadline would be April 15, 2025.

Does it actually understand older tax years like 2021? I've got multiple years unfiled because of some health issues and I'm kinda overwhelmed with all the different forms and years.

Sounds interesting but how secure is it? I'm always nervous about uploading my tax docs to some random website. Do they store your information or is it just a one-time analysis?

It handles multiple tax years including 2021 and earlier years too. I actually used it for both 2020 and 2019 since I was behind on both. It organizes everything by tax year and applies the correct rules for each specific year. Regarding security, they use bank-level encryption and don't permanently store your documents after analysis. They just process them to extract the relevant tax information, then you get a complete report. The privacy policy was pretty reassuring - they can't use your personal tax data for anything else.

Wait, how does this even work? The IRS phone system is deliberately designed to be impossible to navigate. Are you saying this somehow jumps the queue or something?

Yeah right. Nothing gets you through to the IRS faster. This sounds like a scam to take advantage of desperate people who are worried about tax problems. The IRS doesn't allow "priority access" through third parties.

It doesn't "jump the queue" exactly - it uses an automated system that continually redials and navigates the IRS phone tree until it gets through to an agent. Then it calls you and connects you directly. It's basically doing the tedious part that would take hours of your time. I was super skeptical too initially! But it's not claiming to have special access to the IRS - it's just automating the painful process of waiting on hold and going through all those menu options. The IRS doesn't know you're using a service, they just think you called and waited like everyone else. I spent 3 hours trying to get through on my own before giving up and trying this.

Filing your 2024 taxes shouldn't be directly affected by your unfiled 2021 return. Each tax year is technically treated separately. The IRS system won't automatically block you from e-filing your 2024 return just because 2021 is missing. However, there can be indirect effects. If you're claiming certain credits or deductions in 2024 that relate to prior year information, there could be verification issues. Additionally, if the IRS has already started sending you notices about your unfiled 2021 return, it's best to address that situation promptly rather than filing a new year while ignoring the past issue.

Yeah the IRS got a funding boost recently and they've been upgrading their systems to better track unfiled returns. They're definitely sending more notices out. But I've heard they're still prioritizing high-income non-filers over people who made under $25k. They go where the money is!