Skipping a tax filing may not seem like a big deal at first. Life gets busy, other expenses take precedence, and another year has passed. You tell yourself you’ll catch up soon, but the thought of filing becomes more overwhelming as time goes on. At some point, you start to wonder: How many years can you go without filing taxes?
The truth is that unfiled taxes are not ignored. The IRS keeps records, and the longer you wait, the bigger the penalties and interest. In some cases, legal action may even become a possibility.
But don’t worry, there are options for catching up on unfiled taxes without making things worse. In this blog post, we’ll tell you how long you can wait before the IRS takes action and what you can do to fix this problem.
The IRS Statute of Limitations for Unfiled Taxes
If you haven’t filed your taxes, this is a very common question that might hit you: how many years can you go without filing taxes?
| Unlike filed tax returns, which have deadlines for audits and collections, unfiled returns are not protected by the IRS statute of limitations. This means the IRS can request them at any point, no matter how much time has passed. |
Failing to file can lead to penalties and interest that continue to grow over time. If you’re due a refund, you have three years from the original deadline to claim it—after that, it’s lost.
Now that we’ve covered unfiled taxes, let’s clarify the timelines of returns after you do file them
What Happens After Filing?
Once a tax return is submitted, the IRS follows specific time limits for audits and collections:
- Audit Window: The IRS has three years from the filing date to audit your return. If income is underreported by more than 25%, this extends to six years.
- Collection Period: If you owe taxes, the IRS has 10 years from the date they assess your liability to collect the amount due. After this period, the debt is typically erased unless special circumstances extend the deadline.
- Review of Past Returns: When addressing unfiled returns, the IRS generally looks at the last six years, but in cases of fraud or substantial underreporting, they may go back further.
Consequences of Not Filing Tax Returns
If you fail to file your tax return, financial and legal problems can arise. The IRS imposes penalties, interest, and legal ramifications that can increase over time.
Let’s start with the penalties.
Tax Penalties
Mainly, there are two types of tax penalties:
| Failure-to-File Penalty | Failure-to-Pay Penalty |
| This penalty applies when you do not file your tax return by the due date. It is usually 5% of the unpaid taxes each month or part of a month that you do not file your tax return. | This penalty applies when you do not pay the taxes by the deadline. It is 0.5% of the tax you did not pay per month. The maximum limit for this tax is also 25%. |
| A 5% penalty is added each month until it reaches 25% of your unpaid taxes after five months. | If both these penalties are applied in the same month, the IRS reduces the failure-to-file penalty by the amount of the failure-to-pay penalty. So your total penalty would be 5%. |
| For example, if you owe $10,000 in taxes and file six months late, then you will have to pay a $2,500 penalty, which is 25% of $10,000. | For example, if you owe $10,000 in taxes and fail to pay by the due date, then you will have to pay $50 per month, as it is 0.5% of $10,000. In five months, this becomes a total of $250. |
Interest on Unpaid Taxes
The IRS charges interest on these penalties. The interest for not filing is due by the return date. And the interest for not paying is due when you’re notified or when the penalty is added.
Legal Ramifications
Legal punishments can be harsh when you intentionally do not file or pay your taxes. Let’s see what actions the IRS takes in such situations.
- Misdemeanor Charges: If the IRS thinks that you did not file your tax return intentionally, they can file misdemeanor charges. This can lead to a fine of up to $25,000. You can also face a year of imprisonment.
- Substitute for Return (SFR): If you fail to file your tax return, the IRS may file it on behalf of you. They will file this return using the information they already have. It usually doesn’t include any deductions, exemptions, or credits that you can be eligible for. This can make your tax bill higher.
- Wage Garnishment or Bank Levies: The IRS can seize money from your wages through wage garnishment to collect unpaid taxes. They can also take funds or even freeze your bank accounts with bank levies. And this doesn’t require a court order. This can affect your credit score.
- Revocation of Passport: If you owe $59,000 or more in unpaid taxes, including interest and penalties, the IRS can report your debt to the state department. This means that your passport can be denied, revoked, or limited, which can prevent you from traveling internationally.
Options for Catching Up on Unfiled Taxes
Not filing your taxes for several years can lead to serious consequences, but how many years can you go without filing taxes before the IRS takes action? The good news is that the IRS offers programs and options to help you catch up and get back on track.
Voluntary Disclosure Programs
The IRS provides a voluntary disclosure program. If you are someone who has intentionally not filed your tax return, then you can come forward and tell this to the IRS by yourself. This will help you in reducing the penalties. You can also avoid any potential criminal charges.
Streamlined filing compliance procedures
The IRS also has a program called streamlined filing compliance procedures. This is for the people who were unaware of their filing requirements and have a valid reason for non-compliance. It helps you in reducing penalties.
Filing past-due tax returns
If you have unfiled returns, you can still file the past returns. The IRS wants you to file even if you cannot pay immediately. You can even pay a small amount to reduce interest and penalties. The IRS also allows you to pay in installments if you cannot pay all your taxes in one go. It is also advised to work with a tax professional to claim all credits and deductions and also reduce your tax liability.
Offer in Compromise
The offer in compromise helps taxpayers settle their tax debt for less than they owe. It is intended for people who cannot afford to pay their full taxes and who may face financial problems if they do so.
Currently Not Collectible (CNC) Status
If you are facing severe financial hardship and cannot afford to pay your taxes, you can request the IRS to place your account in “Currently Not Collectible” status. This temporarily stops collection efforts until your financial situation improves.
First-Time Penalty Abatement (FTA)
If you have a history of filing on time but missed a year due to unexpected circumstances, you may qualify for a first-time penalty waiver. This can reduce or eliminate penalties, making it easier to catch up.
Installment Agreement
If you cannot fully pay your tax debt, the IRS allows structured payments through an installment agreement. This helps you manage payments over time while avoiding severe penalties.
Innocent Spouse Relief
If any of the spouses failed to file or reported incorrect income, they may qualify for innocent spouse relief. This removes their liability for unpaid taxes due to their actions, helping protect them from financial consequences.
Process of Filing Back Taxes
Collect all the necessary documents for each year you are filing. These documents include W-2 forms, 1099 forms, past tax returns, receipts, and records.
Find the correct tax forms for the years that you are filing. You can find these forms on the IRS website. Make sure that you download specific forms for each tax year.
Fill out all the forms correctly. Ensure that you include all incomes, deductions, and credits. If you are not sure about any aspects of the tax return or find it difficult, consider the help of a tax professional like Hopkins CPA Firm.
Submit the completed returns to the IRS. Make sure you are using the correct email address.
If you owe any taxes, pay them as soon as possible to avoid any penalties or interests. The IRS offers different payment options, like online payments and installments.
The IRS Won’t Forget About Your Unfiled Taxes
Get Help from Hopkins CPA Firm →
Ignoring unfiled taxes can seem easier at the moment, but we’ve seen firsthand how quickly it can spiral. Many taxpayers wonder, How many years can you go without filing taxes before the IRS takes action? The truth is, waiting too long can lead to harsh consequences.
At Hopkins CPA Firm, we’ve helped countless individuals and businesses tackle their tax issues head-on, and we know exactly what it takes to resolve these challenges efficiently.
We have:
- Helped business owners file returns and set up structured payment plans to save their companies.
- Assisted self-employed professionals in filing back taxes and reducing their liabilities.
- Guided individuals facing IRS notices and wage garnishments to negotiate better terms.
- We have worked with expats and non-residents to resolve U.S. tax obligations smoothly.
- Supported taxpayers in securing penalty abatements and manageable installment agreements.
Hopkins CPA Firm not only offers solutions—we deliver real, practical results that make a difference. If you’re facing unfiled tax issues, now is the time to act. Contact Hopkins CPA Firm today, and let’s get you back on track.
FAQ's
Can the IRS file a tax return on my behalf if I don't file it?
Yes, if you don’t file your tax return, the IRS can file a Substitute for Return (SFR) on your behalf. The IRS files this tax return based on the information it already has. Remember that it does not include any deductions, credits, or exceptions that you might qualify for, resulting in a higher tax bill.
What happens if I can't pay the taxes I owe from unfiled returns?
If you fail to file or pay, it can lead to penalties and criminal charges. This can also increase your overall debt over time. If you can’t pay the taxes you owe, the IRS still wants you to file your past-due returns. If you can’t pay the full amount completely, paying even a small amount can help you in reducing penalties and interests. The IRS also offers options like paying in installments and the offer in compromise.
Will I still receive refunds for years I didn't file taxes?
You have to file your tax return within three years of the due date if you want to get a refund. If you file after this time period, you can lose your refund. Also, if you have unfiled returns in the past, the IRS can hold your current refund as well until you file your previous returns.
How does not filing taxes affect my credit score?
Not filing your taxes does not directly affect your credit score. However, if the IRS takes legal actions, like putting a tax lien on your property or garnishing wages, it can affect your credit score. It’s better to file your unfiled returns before things get to this point.
Can I still claim deductions and credits when filing back taxes?
Yes, you can still claim deductions and credits while filing your back taxes. But there are time limits. If you want a refund from deductions and credits, you must file the return within three years of its original due date. You can lose your refund if you file after this.
