Unfiled Taxes: How to Resolve 5+ Years of Missing Returns and Regain Peace of Mind

For many Texans, unfiled tax returns are one of those problems that quietly grows over time. Maybe it started with a tough year — an illness, job change, or business setback — and before long, one missed filing turned into several. It’s a situation that feels intimidating, but it’s far from hopeless.

At Infinity Resolution, Michelle Hiller, EA, works with individuals and business owners across Texas to bring unfiled returns current, reduce penalties, and help clients get back into good standing with the IRS. Whether you’ve missed one year or more than five, the sooner you act, the more control you regain over your financial future.

Why Unfiled Taxes Can’t Be Ignored

Failing to file taxes for multiple years can lead to serious complications. The IRS expects every taxpayer to file an annual return — even if you can’t afford to pay what’s owed. When years go unfiled, the IRS can take action on your behalf, often in ways that make your situation worse.

Here are a few of the most common consequences:

1. Substitute for Return (SFR):
If you don’t file, the IRS can prepare a return for you using only income data they receive from employers and banks. This “Substitute for Return” doesn’t include deductions or credits you may qualify for, which means the balance due is usually much higher than it should be.

2. Accruing Penalties and Interest:
Each unfiled year can add late-filing and late-payment penalties — up to 25% or more of your unpaid balance — plus daily interest. Over time, this can double or even triple your debt.

3. Risk of IRS Collections:
The longer your returns remain unfiled, the greater the risk of levies, liens, or wage garnishments. The IRS may also restrict payment plan options until all missing returns are submitted.

4. Loss of Refunds and Credits:
If you’re owed a refund, it’s only available for three years from the original due date. After that, it’s gone forever — even if you later file your return.

5. Complications for Loans or Employment:
Unfiled taxes can surface during background checks or loan applications. Lenders often require proof of tax compliance before approving mortgages, business loans, or financial aid.

In short, unfiled taxes don’t disappear — they just become more difficult to manage over time.

The Good News: You Can Always Catch Up

No matter how many years have passed, the IRS allows taxpayers to file and restore compliance. In fact, the IRS often welcomes voluntary filing efforts, since it demonstrates good faith.

Michelle Hiller, EA, helps Texans handle this process calmly and efficiently. She understands that unfiled taxes aren’t just about paperwork — they’re about rebuilding financial confidence.

Here’s how the process typically works:

1. Information Gathering: Michelle helps you collect wage and income records, IRS transcripts, and any missing documentation for prior years.

2. Reconstruction of Records: If necessary, she works with you to recreate financial information — especially helpful for self-employed clients or small business owners.

3. Accurate Preparation: Each return is prepared correctly and completely, ensuring you get credit for all deductions and credits you deserve.

4. Submission and Communication: Michelle files your missing returns and handles any communication with the IRS on your behalf.

5. Next Steps: Once you’re caught up, she helps explore payment plans, penalty relief, or other options to resolve any remaining balance.

Why Professional Help Matters

Filing back returns can be more complicated than filing a current-year return. Forms change, rules evolve, and certain deductions may no longer apply. Errors on older returns can trigger audits or delays — which is why having an experienced Enrolled Agent like Michelle Hiller on your side is so valuable.

She reviews your IRS account for accuracy, identifies any substitute returns the IRS may have created, and ensures all filings are done properly. This level of precision helps minimize penalties and prevents future problems.

For Texans dealing with complex tax issues — including self-employment income, business losses, or IRS notices — professional representation is not just helpful; it’s essential.

What If You Can’t Pay the Full Amount?

Filing back returns doesn’t necessarily mean paying everything right away. The goal is to first become compliant — meaning all returns are filed — and then to address the balance owed.

Once you’re compliant, Michelle can help you explore resolution programs such as:

• Installment Agreements that break your balance into manageable monthly payments.

• Penalty Abatement for taxpayers with a solid history of compliance who qualify for relief from certain fines.

• Currently Not Collectible (CNC) status if you’re facing financial hardship.

• Offer in Compromise (OIC) if you may qualify to settle your debt for less than the total owed.

The IRS will not typically consider these options until all missing returns are filed — another reason it’s so important to act promptly.

Restoring Peace of Mind and Financial Confidence

Many Texans who finally address years of unfiled returns describe it as a weight lifted off their shoulders. The process may seem intimidating at first, but with professional guidance, it often goes more smoothly than expected.

At Infinity Resolution, Michelle takes pride in making the process judgment-free and confidential. She focuses on clear communication, realistic timelines, and practical strategies tailored to each client’s circumstances.

Whether you’re dealing with five years or fifteen years of missing returns, the best time to act is now. The longer you wait, the fewer options you may have — but with the right help, you can take control again.

Take the First Step Toward Compliance

You don’t have to face years of unfiled taxes alone. With professional guidance and a clear plan, you can restore your good standing with the IRS and move forward confidently.

Reach out today to Michelle Hiller, EA at Infinity Resolution for a confidential consultation at (281) 796-1143. Michelle will review your situation, outline the best steps to get current, and help you resolve your tax challenges with skill, care, and professionalism. Serving Houston and all of Texas.