Haven't Filed Taxes in Years? Here's What to Do
Short answer
File all past-due returns, even if you can't pay what you owe. Filing stops the failure-to-file penalty from growing, protects refunds you may still claim (generally within 3 years of each return's due date), and lets you set up a payment plan for any balance. If you don't file, the IRS may file a substitute return that might not include all the deductions you're entitled to.
Step 1: Find out what the IRS has on file
Request your wage and income transcripts through your IRS online account. They show the income statements the IRS received for each year, such as wages and contractor payments, which you'll need to rebuild the returns.
Step 2: Rebuild your income and expenses
For self-employed people and business owners, the transcripts only show part of the picture. Bank statements, card statements, and invoices let you reconstruct income and the expenses that reduce it. Our guide to which records to keep helps you know what to look for.
Step 3: File, even if you can't pay
File every past-due return, sent to the same place you'd file an on-time return (or to the address on any notice you received). Filing stops the late-filing penalty from growing, and the IRS generally takes about six weeks to process an accurate past-due return.
Why waiting makes it worse
- Substitute returns: the IRS may file one for you that might not include all your deductions, then propose a tax bill.
- Lost refunds: refunds are generally forfeited if not claimed within 3 years of the due date.
- Social Security credits: self-employment income you don't report isn't credited toward your benefits.
- Collection: unpaid bills can lead to a federal tax lien or levy.
- Loans: lenders typically ask for filed returns.
Step 4: Deal with any balance
Once returns are filed, look at the total. Options include installment agreements and, for some, an offer in compromise. Penalty relief may also be available.
Get help before the IRS contacts you
A CPA can talk to the IRS on your behalf, rebuild the missing years, and sequence the filings so you're not hit with surprises.
Several years behind?
We help people catch up every week. Talk to us confidentially about getting back on track.
Frequently asked questions
What happens if I don't file taxes for several years?
The IRS may prepare a substitute return for you, which might not include deductions you're entitled to, and then bill you. Unpaid bills can lead to liens and levies. Refunds older than about three years can be lost.
Can I still get a refund for a year I didn't file?
Generally only if you file within 3 years of that return's due date. After that, the refund is forfeited.
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