How Long Can You Go Without Filing Taxes?

Filing taxes is a legal obligation Americans must fulfill every year—or risk the wrath of Uncle Sam.

For most taxpayers, the tax filing deadline is April 15 (or the next business day if it falls on a weekend or holiday). You may be penalized if you miss this date and don’t file for an extension.

However, if you’ve missed your tax filing deadline for several years, the consequences can escalate. From higher penalties to possible criminal charges, the IRS has ways to deal with unfiled taxes. 

The good news? It’s never too late to catch up and minimize the damage.

Table of Contents

1. What happens if you haven’t filed your taxes in years?
2. How much could I owe if I don’t file my taxes?
3. How do I catch up on unfiled tax returns?
4. FAQ

What happens if you haven’t filed your taxes in years?

If you haven’t filed taxes for an extended period, you could face a series of increasing penalties, interest, and even legal consequences. Here’s a breakdown of what happens over time:

If you haven’t filed taxes in 1 year

If you’ve only missed a year, you may receive warning notices and be encouraged to file before escalation. You’ll begin accruing late payment penalties and interest on your debt starting on April 16 (or the next business day after the filing due date).

The only way to avoid this is by filing for an extension, which gives you an additional six months to file your tax return, moving the deadline from April 15 to October 15 (or the next business day if it falls on a weekend or holiday).

Tip

Keep in mind that this is an extension to file, not an extension to pay—you must still estimate and pay any taxes you owe by April 15 to avoid penalties and interest.

If you haven’t filed taxes in 3 years

After three years, the IRS considers you significantly behind, but you still have options to file your taxes and reclaim potential refunds. Here’s what can happen after three missed years:

• Refund eligibility: The IRS gives you a three-year window to claim refunds. If you don’t file by this point, you’ll forfeit any tax refunds you’re owed.
• Late filing penalties: The failure-to-file penalty begins to accumulate, which is 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.
• Interest: Interest on unpaid taxes starts accruing from the original due date of the return.

If you haven’t filed taxes in 6 years

After six years, the IRS becomes much more aggressive in its efforts to collect taxes. At this stage, you may face the following consequences:

• Substitute returns: The IRS may file a Substitute for Return (SFR) on your behalf. This document estimates your income but does not include deductions or credits you might be entitled to, which means you’ll likely pay more than if you filed them yourself.
• Increased penalties: Penalties for both failure to file and failure to pay will continue accumulating, making the debt grow substantially.
• IRS notices: You will likely receive multiple warning notices from the IRS, which could lead to tax liens or levies.

If you haven’t filed taxes in 10+ years

After 10 years without filing, the IRS could escalate collection efforts, including legal action. Here’s what you need to know:

• Statute of limitations: The IRS typically has 10 years to collect taxes, but this window doesn’t apply if you haven’t filed. The clock doesn’t start until you file your returns.
• Tax liens and levies: The IRS can place liens on your property and seize bank accounts or wages through levies.
• Possible criminal charges: While rare, extreme cases of willful failure to file can lead to misdemeanor or felony charges, carrying fines and even potential jail time.

If my clients need to catch up on years of unfiled tax returns, I recommend that they consult a tax professional and start gathering essential documents, such as past W-2s, 1099s, and K-1s, to ensure they are well-prepared. 

A tax professional can help them develop a strategy, negotiate with tax authorities, assist with mitigating penalty fees, and maintain both immediate and long-term compliance.

How much could I owe if I don’t file my taxes?

If you don’t file your taxes, you could end up owing much more due to penalties and interest. Here’s how:

• Failure-to-file penalty: 5% of the unpaid taxes per month, up to a maximum of 25%.
• Failure-to-pay penalty: 0.5% of the unpaid taxes per month, increasing to 1% if a demand for payment is issued, with a maximum of 25%.
• Interest on unpaid taxes: The IRS charges interest on unpaid taxes, compounded daily. The current rate is the federal short-term rate plus 3%, which can fluctuate quarterly.

Example scenario:

Suppose you owe $10,000 in taxes. After one year of not filing, you could end up owing $13,400. Let’s break it down:

• Failure-to-file penalty: $2,500 (25% of $10,000)
• Failure-to-pay penalty: $600 (6% of $10,000)
• Interest: $300 (assuming a 3% rate)

Total debt (tax due, penalties, and interest) after one year: $13,400

The longer you wait, the more your fees compound, potentially doubling or tripling your initial debt.

How do I catch up on unfiled tax returns?

If you’re behind on your taxes, don’t panic—there are options available to help you catch up and minimize penalties. You can settle tax debt with the IRS by yourself or with help.

Work with a tax relief company

A tax relief company can help you negotiate with the IRS and possibly reduce what you owe through programs like Offers in Compromise or installment agreements. We recommend these companies, which specialize in resolving tax issues:

• Anthem Tax Services brings 30 years of experience in tax debt relief. It offers a fully remote team of licensed professionals in all 50 states. With an A+ BBB rating, a 100% money-back guarantee, and a free consultation, it provides expert assistance for individuals and businesses facing $10,000 or more in federal or state tax debt.
• Larson Tax Relief specializes in resolving larger tax debts of $25,000 or more, offering expert support from enrolled agents and tax attorneys. It also earns an A+ BBB rating and offers a 15-day money-back guarantee plus no discovery fee.

To learn more, check out our review of the best tax relief companies.

Set up a payment plan with the IRS

If you can’t pay your debt all at once, consider applying for an IRS payment plan. The two main payment plan options are:

1. Short-term plans: For debts under $50,000, allowing repayment within 120 days.
2. Long-term plans: Installment agreements for larger debts, which can be paid over several years.

File missing returns through the IRS Voluntary Disclosure Program

The IRS tends to be more considerate with taxpayers who choose to come forward to resolve unfiled taxes. The Voluntary Disclosure Program allows you to submit past returns and potentially avoid criminal prosecution.

Consider an Offer in Compromise

An Offer in Compromise allows you to settle your tax debt for less than what you owe if you demonstrate financial hardship or inability to pay. Tax relief companies can assist with this application.

As you can see, no matter what you owe, these options can help you come back from tax debt. If you owe more than $50,000, your best options are likely working with the IRS to come up with a long-term repayment plan or working with a tax relief company to file an Offer in Compromise.

Learn more about tax relief options here.

FAQ

Can I skip a year of filing taxes?

No. Skipping a year of filing taxes can lead to penalties, interest, and potential legal consequences. If you owe taxes, the IRS will assess failure-to-file and failure-to-pay penalties, which can add up fast. Even if you don’t owe money, failing to file could delay refunds or eligibility for credits. If you missed a year, it’s best to file as soon as possible to avoid further complications.

How long can you not file taxes before going to jail?

There’s no strict timeline, but willfully failing to file taxes for multiple years can result in criminal charges. The IRS might pursue criminal tax evasion cases for those who deliberately avoid filing or paying for several years, especially when they owe large amounts. 

Tax evasion is a felony that can carry up to five years in prison, while failure to file is a misdemeanor with a maximum penalty of one year per unfiled year (though prosecutions are rare for first-time offenders).

Is it a felony to not file taxes?

Not filing taxes is generally a misdemeanor, but it can become a felony if the IRS determines intentional tax evasion, fraud, or deliberate concealment of income occurred. Felony tax evasion can lead to substantial fines and prison time, while simple failure to file often results in civil penalties instead.

Does the IRS forgive back taxes?

Yes, but only under specific circumstances. The IRS offers:

• Offer in Compromise (OIC): Allows you to settle for less than what you owe if you prove financial hardship.
• Currently Not Collectible (CNC) status: Pauses collection efforts if you can’t afford payments.
• Innocent Spouse Relief: Removes tax liability from a spouse who was unaware of errors or fraud.
• Statute of limitations: The IRS generally has 10 years to collect unpaid taxes before the debt is erased. (The 10 years starts only after you file taxes.)

If you owe back taxes, it’s best to explore payment plans or settlement options rather than ignoring the debt.