Forgot to File a Tax Return Last Year? Why Admitting to Being Depressed Might Help You Reduce Your IRS Penalties, or It Might Not

If you forgot to file a tax return last year, (and it has been determined that there are millions of US taxpayers in the position) now might be a good time to think about doubling up and filing two returns this year.

However, if the stress of it all is too much, and it is for many people, at least go to the doctor and mention that you are too stressed out to file your taxes.


Be sure to get proof of this doctor's visit, and the conversation that you had with your doctor. This particular note from the doctor can possibly go a long way in getting your penalties reduced and or removed, if the IRS deems that you were not able to file due to emotional stress!


OK, you don't want anything like that on your medical record. Can't blame you. But if you determined that you owed the IRS a large sum due to 401K withdrawals or not paying Federal withholding taxes, because you needed the money to live on, than that doctor's visit is more natural than not.


Living off 401K monies has been the norm for many people for the past few years. And the penalties associated with 401K disbursements, when you are NOT of retirement age, can add up. It's enough to make anyone depressed, especially if you don’t have the monies to pay the taxes.

And if a doctor's note can save you $3000 to $6000 (average) in penalties, admitting to a little depression might be so bad! And if you have been looking for a job for 24 months, and the only thing you could get was a minimum wage at the local store, then you probably are depressed and haven’t realize it yet.

The IRS has the final say on these matters, and require that ALL un-filed tax returns are filed before they will consider your case. Of course there are special forms to fill out, and of course we complete these forms, correctly. And yes, we prepare the un-filed taxes as well.