Tax

File Back Taxes

Having unpaid taxes require taxpayers to file back taxes. Back taxes are the tax payments you owe to the government for prior tax years. Any unpaid tax whether it be at the federal, state or local levels must be paid. Paying back the unpaid taxes as soon as possible will benefit you since they accumulate interest and penalties. Even paying your unpaid taxes a day before can save you money.

You may be required to pay back taxes not because you did not pay your taxes but also for failing to report all income earned during the prior tax year or not filing a tax return for that year. Since not filing is a much more serious offense than not paying, the penalties are unavoidable. The Internal Revenue Service will impose a penalty after the notices have been sent. The monetary penalties can be anywhere between $100 to $435. This depends on the due date.

How to file back taxes

On top of this, there will be the interest on the amount remains unpaid. It isn’t as scary as a credit card or a loan debt interest though. Usually, the interest is about 0.5% for every month that passes by unpaid. The interest can add up to 25%. Therefore, the maximum interest that can be imposed by the IRS will be for 50 months, just a little bit over four years.

How to file back taxes?

Filing a back tax return is as simple as filing a regular tax return. You need to gather your tax documents that report your income during the tax year. Same as how you normally file a tax return, you’ll need to gather your Forms W-2 and Forms 1099 forms for the tax years remain unpaid.

If you can’t get ahold of the tax documents you need, you can request a copy from the IRS by filing a Request for Transcript of Tax Return with Form 4506-T. By filing a Form 4506-T, you will get the tax documents you need to file a back tax return. However, keep in mind that you will receive the transcripts that contain the relevant information, not the original forms.

Aside from the tax forms and documents that report your income, you must use the right tax forms for each tax year you’re filing a back tax return. You can gather the prior year’s tax forms and documents you need to file your back taxes from our IRS Forms page from here.

Submitting Back Tax Returns to the IRS

Just like how you normally would file a tax return electronically, complete your back tax returns and submit it to the IRS. You can use any tax software you like but our recommendation is TurboTax. Because it has fast and easy to understand user interface, filing back tax returns are not going to be a burden on your shoulders.

If you’re filing your back tax returns on a paper Form 1040, you’ll need to mail it to the IRS. The mailing address for back taxes is going to be different depending on which state you reside in. Below, you can find the Internal Revenue Service mailing addresses for every state for back tax returns.

IRS Form 1040 Mailing Addresses

StatesMailing Address with PaymentMailing Address without Payment
Alabama, North Carolina, South CarolinaInternal Revenue Service
P. O. Box 1214
Charlotte, NC 28201-1214
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002
Alaska, California, Hawaii, WashingtonInternal Revenue Service
P.O. Box 7704
San Francisco, CA 94120-7704
Department of the Treasury
Internal Revenue Service
Fresno, CA 93888-0002
Arizona, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, Oregon, North Dakota, South Dakota, Utah, WyomingInternal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
Arkansas, Georgia, Indiana, Iowa, Kentucky, Missouri, New Jersey, Oklahoma, Tennessee, VirginiaInternal Revenue Service
P. O. Box 931000
Louisville, KY 40293-1000
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002
Connecticut, District of Columbia, Maryland, Rhode Island, West VirginiaInternal Revenue Service
P. O. Box 931000
Louisville, KY 40293-1000
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
Florida, Louisiana, Mississippi, TexasInternal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0002
Illinois, Michigan, Minnesota, Ohio, WisconsinInternal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
Department of the Treasury
Internal Revenue Service
Fresno, CA 93888-0002
Delaware, Maine, Massachusetts, New Hampshire, New York, VermontInternal Revenue Service
P.O. Box 37008
Hartford, CT 06176-7008
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002
PennsylvaniaInternal Revenue Service
P.O. Box 37008
Hartford, CT 06176-7008
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
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William Mayer

Hello, I'm William! I mostly write about financial topics such as stocks, investments, and small business ideas. I like to cover the hot entrepreneurship subjects where you and I can look forward to the future.

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