Unfiled Federal Returns Left After the October 15 Deadline Are Still Better Filed by the Taxpayer Than Prepared by the IRS
WASHINGTON, DC – November 6, 2026 – Mid-Atlantic Law & Tax, a tax law firm with offices in Washington, DC and Warren, New Jersey, is encouraging individuals who still have one or more unfiled federal income tax returns after the October 15 extended deadline to file them now, before the IRS prepares a substitute return in their place.
An extension request gives taxpayers until October 15 to file, according to the IRS, and it extends only the time to file, not the time to pay. Once that date passes, the failure-to-file penalty is 5% of the unpaid tax for each month or partial month a return is late, up to a maximum of 25%.
When a return stays unfiled, the IRS may file a substitute return that, in its own words, might not give credit for deductions and exemptions the taxpayer is entitled to. The IRS then sends a Notice of Deficiency, CP3219N, proposing an assessment, and the taxpayer has 90 days to file the past-due return or petition the Tax Court, according to the agency’s guidance on filing past due tax returns. Once that tax is assessed, the IRS’s 10-year period to collect it begins. The same guidance notes that a refund for withholding or estimated payments has to be claimed within 3 years of the return’s due date, or it’s lost.
“People who miss October 15 often stop there, as though the deadline was the last chance to fix it,” said James A. Kraehenbuehl, the firm’s attorney and CPA. “It isn’t, but the next deadline is one the IRS sets, and a return the agency prepares from the income it can see rarely reflects everything a person can claim. Filing your own return, even late and even without the money to pay it, keeps the numbers yours and leaves payment plans and penalty relief on the table.”
What We Do First With a Client Who Has Unfiled Years
We start by pulling the IRS transcripts for each open year, so we can see which returns the agency has on file, what income has been reported under the client’s name, and whether a substitute return or a notice has already been issued. That tells us which year is most urgent and whether a 90-day deadline is already running.
From there we prepare the missing returns, often several years at once. The firm prepares unfiled prior-year returns regularly, often as part of broader unfiled-returns resolution work. The balance those returns produce is what any payment arrangement or penalty request is built on.
Why Filing Comes Before the Payment Conversation
A balance the IRS calculates on a substitute return is not a sound basis for a payment plan or an offer, because it may overstate what is owed. Filing first gives the taxpayer a figure that reflects their actual deductions and credits, and it shows the agency the person is back in compliance. Those two things together decide which resolution options are realistic.
About Mid-Atlantic Law & Tax
Mid-Atlantic Law & Tax is a tax law firm with offices in Washington, DC and Warren, New Jersey, serving individuals and businesses across the District of Columbia, Maryland, Virginia and New Jersey. The firm handles IRS tax resolution, including unfiled tax returns, state tax matters in the District, Maryland and Virginia, tax planning and tax preparation. James A. Kraehenbuehl is an attorney and certified public accountant licensed in the District of Columbia. More detail on the firm’s resolution work is on its services page.
Media Contact
James A. Kraehenbuehl Attorney and CPA, Mid-Atlantic Law & Tax 1717 K Street NW, Suite 900, Washington, DC 20006 Phone (202) 978-2888 Email [email protected] Consultation requests via the firm’s contact page
Media Contact
Company Name: Mid Atlantic Law & Tax
Contact Person: James Kraehenbuehl
Email: Send Email
Phone: 202-978-2888
City: Washington
Country: United States
Website: https://midatlantictaxresolution.com
