How to File Back Taxes if You Haven’t Filed in Years

Missing tax filings can lead to penalties and serious legal trouble. The best solution is to file your old returns with the IRS as soon as possible.

You can file back taxes online, in person at a local IRS office, or by mail. Catching up on missed filings protects you from penalties and keeps you on track.

Why You Must File Tax Returns

You need to file your federal income tax return every year. Failing to do so can result in civil penalties and criminal prosecution.

Your tax liability depends on your filing status, age, and gross income. How you earn income matters too. W-2 employees have different requirements than self-employed individuals.

Generally, if you earn more than the standard deduction, you must file a tax return. Use the IRS Interactive Tax Assistant to check if you’re required to file.

Tax Returns and Bankruptcy

In Chapter 7 bankruptcy, the trustee will request two years of tax returns. They need to review your financial history before proceeding.

If you were required to file but didn’t, your bankruptcy case can be dismissed. You won’t receive a discharge of your debts.

If you don’t earn enough to require filing, you won’t face dismissal. You’ll need to submit an affidavit explaining why you don’t file taxes.

Dealing with tax issues while considering bankruptcy? You can speak with a bankruptcy attorney for free to understand your options.

Tax Refunds for Non-Filers

You must file your tax return to receive a refund. You have three years from the return’s due date to file and claim it.

The annual filing deadline is typically April 15. You have until April 15 three years later to file and get your refund.

Most people with taxes withheld from paychecks receive refunds. Even without withholding, you may qualify for the earned income tax credit, child tax credit, or other credits.

Can’t Afford to Pay Your Taxes?

You may owe taxes you can’t afford when filing. The IRS offers payment plans and settlement options for people who need help.

• Offer in Compromise (OIC): Settle your tax debt for less than you owe.
• Partial Payment Installment Agreement (PPIA): Pay back your tax bill in monthly installments.
• Currently Not Collectible (CNC): The IRS suspends collection activities until your finances improve.

Consequences of Not Filing Taxes

Intentionally choosing not to file when required is usually tax evasion. Tax evasion is a criminal offense.

Never lie to the IRS about filing your taxes. The IRS rarely prosecutes taxpayers criminally. They focus on high-profile or extremely large tax debt cases.

Penalties for Late or Missing Tax Returns

The IRS uses civil penalties to enforce taxpayer obligations. Here are three common penalties:

• Failure to file penalty
• Failure to pay penalty
• Late filing penalty

Penalties plus interest can significantly increase your tax bill over time. You can request penalty abatement to have penalties waived or interest removed.

Penalty Abatement for Taxes

Penalty abatement is a process for requesting penalty waivers or reductions. The First Time Penalty Abatement program is one option.

You must meet these requirements to qualify:

• No penalties in the last three years of filing taxes
• All currently required returns filed or extensions submitted
• Tax due paid or payment arranged

You can also request abatement for other reasons. These include IRS written advice that caused the penalty, disaster relief eligibility, or reasonable excuses like long-term illness.

The failure to pay penalty continues accruing until you pay in full. Wait until you’ve paid the tax portion before requesting abatement. File Form 843 to request abatement.

Consult a tax professional like a CPA, attorney, or enrolled agent if needed. They can represent your case with the IRS.

IRS Can File Returns for You

The IRS may file a substitute for return (SFR) if you don’t file. They’ll use whatever information they have available.

An SFR isn’t preferable for several reasons:

• You only get the standard deduction
• The SFR may file you as single even if you’re married
• You lose out on available tax deductions
• It may cost more if the IRS uses outdated income information

You can still prepare your own tax return after an SFR filing. The IRS usually accepts your numbers instead. Appeal to the IRS Office of Appeals if they don’t replace the SFR.

How to File Past Due Taxes

You can file old tax returns in person, electronically, or by mail. Each method has specific requirements.

Several ways exist to e-file your taxes. You’ll receive an electronic receipt for your records.

To file in person, bring two copies of your returns. Keep one copy for yourself. Have the IRS time-stamp your receipt copy.

To file by mail, use certified or registered mail with return receipt. You need proof you sent documents to the IRS.

Use Correct Tax Forms for Each Year

You must use the correct form for each prior tax year. You can’t use a 2024 Form 1040 for 2023 taxes.

Download previous year forms from the IRS Prior Year Forms page. You can also:

• Pick up hard copies at your local IRS office
• Call the IRS Forms Department at 800-829-3676 to request forms
• Use tax software to prepare your return
• Contact a tax professional for help

IRS Audit Statute of Limitations

The normal statute of limitations for IRS audits is three years. The clock starts from the date you filed the return.

However, there’s no statute of limitations if fraud is involved or no return was filed. The IRS can audit you at any time without time restrictions.

If you understate income by more than 25%, the IRS gets six years to audit you or assess new taxes.

State Tax Return Requirements

Yes, you must file state tax returns if your state has income tax. Every state with income tax shares information with the IRS.

States often notice missing returns first and alert the IRS. The following states don’t have income tax:

• Alaska
• Florida
• Nevada
• New Hampshire (taxes investment income only)
• South Dakota
• Tennessee (taxes investment income only)
• Texas
• Washington
• Wyoming

Filing Requirements for 1099 and W-2 Recipients

Usually, yes. If you receive a 1099 or W-2, you need to file taxes. The Information Returns Program (IRP) is highly effective at finding non-filers.

The IRS receives copies of all W-2s and 1099s you receive. They’ll notice if there’s no return to match them to.

Get Tax Document Transcripts From the IRS

You’ll need tax documents from previous years to prepare old returns. People commonly lose old W-2s and 1099s.

Get your tax transcript online from the IRS Get Transcript site. Your transcript won’t include unreported self-employment income.

You must report all income or risk tax fraud charges. Review old business records and bank statements to find unreported income. Compiling old records is difficult, so file annually if you’re self-employed.

Professional Help With Back Taxes

Filing multiple years of back taxes can feel overwhelming. Consider hiring a tax professional or using tax software.

If you can’t afford professional help, these free programs may assist you:

• Volunteer Income Tax Assistance (VITA): For lower-income taxpayers, people with disabilities, and limited English speakers
• Tax Counseling for the Elderly (TCE): Free help for elderly taxpayers
• AARP Foundation Tax-Aide: Free tax assistance for elderly taxpayers
• MilTax: For military members
• IRS Free File: Free software for lower-income taxpayers (self-help program)

The IRS provides free tools to find program locations near you.