How long can you go without filing taxes?

Filing taxes may not top your list of exciting annual tasks, but ignoring them for too long will come back to bite you hard.

According to IRS estimates, about $63 billion in taxes went unpaid in 2022 due to nonfiling. That’s one of the largest components of the overall tax gap. That suggests millions of required returns went unfiled that year, prompting increased enforcement efforts.

While the government isn’t likely to knock on your door the day after a missed deadline, tax obligations don’t just vanish. The longer you wait, the more serious the consequences become.

This guide answers questions like “How long can you go without filing taxes, what happens if you delay too long, and what can you do to make things right.

How much time do you have to file your taxes?

In most cases, your federal tax return is due by April 15th. If that date falls on a weekend or holiday, the IRS usually shifts the deadline to the next business day. Missing the deadline isn’t the end of the world, but it’s not something you should ignore.

You can request an extension to file, which gives you until October 15th. But here’s the catch: the extension gives you more time to submit paperwork, not to pay your taxes. Any unpaid tax after April 15th starts accruing interest and potential penalties.

If you don’t owe taxes or are owed a refund, you technically have up to three years to file and still claim your money. After that, the refund disappears, and the IRS keeps it.

What happens if taxes aren’t filed in a year or more

Not filing one year might feel like no big deal, especially if you think you don’t owe anything. But when that stretches into two, three, or even more years, the IRS can, and often does, step in.

Here’s what can happen:

• Penalties stack up fast. The failure-to-file penalty is 5% of your unpaid taxes per month, up to 25%. If you owe $5,000 and file five months late, that’s $1,250 in penalties alone.
• Interest continues to grow. The IRS applies interest to outstanding tax balances, with the interest accruing on a daily compounding basis. As of 2024, the interest rate is 8% annually for individuals.
• You could lose your refund. If you’re owed money and don’t file within three years, that refund is gone for good.
• The IRS might file for you. It’s called a Substitute for Return (SFR). They use whatever income information they have (without deductions or credits) and send you the bill.
• Your wages or bank accounts could be garnished. In extreme cases, the IRS can place a levy on your wages or freeze your bank accounts to recover what you owe.
• In rare cases, not filing can become a criminal offence. While the IRS doesn’t jail people for simple mistakes, they can pursue criminal charges for willful failure to file, especially if large amounts are involved.

How to file back taxes

Filing late taxes may feel overwhelming, but the process is fairly straightforward if you tackle it step by step. Here’s how to catch up:

1. Gather your documents. Start with W-2s, 1099s, and any other income-related records for the year(s) in question. You can request wage and income transcripts from the IRS if needed.
2. Download the appropriate forms. Use the IRS website to access prior-year tax forms. Tax software often only supports the past two or three years.
3. Consider hiring a tax professional. If you have multiple years to catch up on or if your situation is complicated, a CPA or enrolled agent can help you avoid errors.
4. Submit each year’s return separately. The IRS doesn’t accept one return to cover multiple years. Each return has to be filed as if you were doing it in real time.
5. Pay what you can. Even partial payment can help reduce interest and penalties. You can also apply for an installment plan if needed.
6. Keep records. Once you’ve filed, keep proof of submission and any IRS correspondence in case there are questions later.

What to do if you can’t pay what you owe in taxes

It’s one thing to be late. It’s another to file and realize you owe thousands you can’t pay right away. If that’s your situation, don’t panic. 

Here are your options:

Request a payment plan

The IRS offers short and long-term installment agreements. You can submit your application online if your total outstanding amount, encompassing tax, penalties, and interest, is under $50,000.

Apply for an Offer in Compromise (OIC)

This allows you to settle your tax debt for less than the full amount owed. It’s tough to qualify, but worth considering if your financial situation is dire.

Ask for a temporary delay

If you’re going through hardship, the IRS might mark your account as “currently not collectible,” delaying collections temporarily. Interest will still accrue, but you’ll get breathing room.

Use IRS hardship programs

Programs like the Fresh Start Initiative help taxpayers who are behind on payments catch up without harsh penalties.

Don’t ignore the notices

The worst thing you can do is nothing. Even if you can’t pay now, filing on time and communicating with the IRS helps reduce the damage.

No more wondering how long can you go without filing taxes

So, how long can you really go without filing taxes? Technically, you can delay for years. But the longer you wait, the more complex and costly it becomes.

After three years, you lose any unclaimed refunds. After that, penalties, interest, and IRS enforcement ramp up quickly.

If you’ve missed a tax deadline, whether it was this year or a decade ago, it’s not too late to make things right. The IRS wants people to get back into compliance, not to punish them endlessly. Taking the first step is the hardest part, but it’s also the most important.

The best time to deal with back taxes was yesterday. The second-best time is today.