Hello. We have an issue. My SO and I are buying a house. We got pre-approved and have been searching and got an offer accepted. Has not gone further than that yet.
My SO just remembered that he did not file taxes in 2015. He was in a lot of debt at the time and was going to owe $4k and couldn't afford even a payment plan, so he just didn't file. He had outstanding debt owed to the IRS already (something he was ordered to pay in his divorce) and has since paid that. He has filed all of his taxes since then, every year on time. His previous IRS debt is all paid.
What do we do here? Is there any way we can still get this house? Do the underwriters go back that far (he's already provided them with the last few years of returns)? I am at a loss and his is panicking. Any help is greatly appreciated.
Edit to add; the main worry is that it’s an FHA loan and he worries it will automatically show he missed a year of taxes.