IRS SIX-YEAR COMPLAINCE RULE

Title: The IRS Six-Year Compliance Rule: What It Is and Why It Matters

When it comes to dealing with back taxes or seeking tax relief, one rule stands out as a cornerstone of IRS compliance: the Six-Year Filing Rule. At Lanier Tax Relief, we work with clients every day who are overwhelmed by unfiled tax returns and unsure where to start. Understanding the IRS’s six-year rule can be the key to getting back on track—and avoiding further penalties or enforcement.

What Is the IRS Six-Year Compliance Rule?

The IRS’s six-year compliance policy requires taxpayers to file the most recent six years of tax returns to be considered in good standing. Whether you’re applying for an Offer in Compromise, requesting a payment plan, or trying to avoid enforcement actions, the IRS won’t consider any resolution unless these returns are filed.

This rule comes from an internal policy—not a specific law—but it’s widely enforced. In most cases, even if you haven’t filed for 10 or more years, the IRS will only require six years of returns to bring you into compliance.

Why the Six-Year Rule Is Important

1. It’s the First Step to Tax Resolution
   If you owe back taxes or are being contacted by the IRS, you can’t move forward with any tax relief options until you’ve met the six-year filing requirement. Whether you’re requesting a settlement, asking for penalties to be waived, or entering an installment agreement, the IRS expects a clean filing history for at least the past six years.
2. It Helps You Avoid Enforcement Actions
   Unfiled returns signal noncompliance to the IRS—and that can trigger aggressive actions like levies, liens, or garnishments. Filing your returns, even if you can’t pay your full balance right away, shows good faith and may help you avoid more serious consequences.
3. It Can Limit How Much You Owe
   The longer you wait to file, the more you risk the IRS filing a Substitute for Return (SFR) on your behalf. These returns are based on income only and don’t include deductions or credits, often inflating your tax bill. By filing the required six years yourself, you take control of your tax situation—and might even reduce your total liability.

What Happens If You File More Than Six Years?

While the IRS generally accepts six years of returns for compliance, there are exceptions. For example, if you’re due a refund from more than three years ago, you may not be able to claim it. Similarly, certain audits or enforcement cases may go back further depending on the circumstances. That’s why it’s crucial to work with a tax professional to review your history and determine what’s necessary.

Lanier Tax Relief Can Help

At Lanier Tax Relief, we’ve helped countless individuals in Northeast Georgia and beyond navigate the six-year rule and get back into compliance with the IRS. We’ll review your records, help you gather missing information, and prepare accurate returns to meet IRS requirements—all while exploring your options for settling or reducing your tax debt.

Conclusion: Take the First Step Toward Relief

If you’ve been avoiding the IRS because of unfiled tax returns, you’re not alone—and you don’t have to figure it out on your own. The six-year compliance rule gives you a manageable path to resolving your tax issues. Let Lanier Tax Relief help you take that first step. Call us today at (770) 370-5043 for a confidential consultation and start reclaiming your peace of mind.