Back Taxes? Here’s What to Do If You Haven’t Filed in Years

If you haven’t filed taxes in a while, you’re not alone — and you’re not doomed.

Whether it’s been 2 years or 10, thousands of people fall behind on their tax filings due to life, stress, or financial struggles. The most important thing to know? The sooner you act, the better your outcome will be.

Let’s break down what really happens when you have back taxes or unfiled tax returns — and how to take control of the situation.

What Happens When You Don’t File?

The IRS is patient, but they don’t forget. If you haven’t filed:

• You’ll rack up failure-to-file and failure-to-pay penalties

• The IRS may file something called a Substitute for Return (SFR) — a version of your tax return based only on income reports from employers/banks (and it won't include deductions or credits you're entitled to)

• You could face tax liens, levies, or garnishments

• You may lose your refund if you wait too long (you typically only have 3 years to claim it)

How Many Years Do You Have to File?

The IRS generally wants you to file the last six years of returns to be considered in “good standing.” However, this can vary based on:

• How much you owe

• Whether returns were ever filed but not processed

• If you’re under audit or have received enforcement notices

• If you were due a refund, you only have THREE years to file and claim it

Pro tip: Sometimes it’s better to file more years voluntarily if it helps your case — especially if it reduces balances due.

What If You Don’t Have All Your Records?

Don’t panic. A tax pro can help reconstruct your records using:

• IRS wage and income transcripts (W-2s, 1099s, etc.)

• Bank statements

• Expense reports (for self-employed individuals)

• Third-party tools to help estimate reasonable deductions

You don’t need perfect documentation to get back on track — just enough to file accurate and honest returns.

Can You Be Criminally Charged?

Technically, willful failure to file is a misdemeanor. But in most cases, the IRS is focused on getting you compliant — not putting you in jail.

💡 As long as you’re taking steps to file and resolve your tax debt, the IRS is far more likely to work with you than against you.

What Happens After You File?

Once you’re caught up:

• You’ll have a clear balance due (if any)

• You may qualify for payment plans, penalty relief, or even Offer in Compromise

• You’ll avoid further enforcement (as long as you stay compliant going forward)

Most importantly, you’ll have peace of mind — and that’s priceless.

Final Thoughts

Unfiled returns can feel overwhelming — but you don’t have to live in fear of the IRS. The truth is, they’re often easier to deal with than the anxiety of avoiding them.

Ready to get back on track? Book a confidential Tax Strategy Session and I’ll walk you through the exact steps to get caught up — without judgment, and without stress.