Quick answer: If you haven't filed taxes in years, start by pulling your IRS wage and income transcripts, then file the last six years of returns, newest first. Filing stops the biggest penalty from growing, protects refunds you can still claim for the last three years, and opens the door to penalty relief and payment plans.
Missing a return happens more often than people think, especially after a move, a new business or a hard year. Catching up is usually more manageable than people fear, and some penalties can be removed.
Why filing now matters, even if you cannot pay
- The late filing penalty is ten times the late payment penalty. Filing, even without paying, stops the larger one from growing.
- Refunds expire. You generally have three years from the original due date to claim one.
- The IRS may file for you. A substitute return usually leaves out your deductions and credits.
- Payment plans require filed returns. The IRS will not set up a long term plan until you are current.
How many years of returns do you need to file?
The IRS normally looks for the last six years of returns to consider you back in good standing. As of late 2026, that usually means tax years 2020 through 2025.
- If the IRS has sent you a letter about a specific year, file that year even if it is older.
- If you are owed refunds, there is little downside to filing earlier years too, but refunds older than three years cannot be paid.
- 3 yearsYour window to claim a refund, counted from the original due date. A 2023 refund must be claimed by April 15, 2027.
- 6 yearsHow far back the IRS normally asks people to file to be considered back in compliance.
- 3 years after filingHow long the IRS usually has to audit a return. This clock never starts on a year you never file.
- 10 yearsHow long the IRS generally has to collect a balance, counted from the date the tax is assessed.
How to get your records when you have nothing
Missing paperwork keeps many people stuck. You can rebuild most of it.
- IRS wage and income transcripts. Sign in to your IRS online account to see W-2s, 1099s, 1098s and other forms reported under your number for up to about ten years.
- Account transcripts. These show which years the IRS thinks are unfiled, any substitute returns and any balances.
- Virginia Tax online account. Shows Virginia notices and balances.
- Bank and card statements. Most banks keep about seven years online. Business owners can rebuild income and expenses from them.
Good to know: Transcripts only show what was reported to the IRS. Cash income, business expenses and deductions will not appear, so you still need your own records for those.
Refunds you can still claim, and ones you cannot
Many people who have not filed are owed money, especially W-2 employees. Refunds have a hard deadline.
| Tax year | Original due date | Last day to claim a refund |
|---|---|---|
| 2022 | April 18, 2023 | Expired April 18, 2026 |
| 2023 | April 15, 2024 | April 15, 2027 |
| 2024 | April 15, 2025 | Mid April 2028 |
| 2025 | April 15, 2026 | Mid April 2029 |
A refund from one year can be applied to a balance in another, so filing every open year together often lowers what you owe.
If the IRS already filed a return for you
When the IRS has your income forms but no return, it may prepare a substitute for return. It usually uses single filing status, the standard deduction and no business expenses, so the bill is often much higher than you really owe.
You can usually replace it by filing your own accurate return for that year. Our IRS notice help page explains how we help clients respond.
How IRS penalties and interest add up
| Charge | How it works |
|---|---|
| Failure to file | 5% of the unpaid tax for each month or part of a month late, up to 25%. Generally reduced to 4.5% for any month the failure to pay penalty also applies |
| Failure to pay | 0.5% of the unpaid tax per month, up to 25%. It drops to 0.25% while a payment plan is in place and rises to 1% after a final notice of intent to levy |
| Minimum late filing penalty | For returns more than 60 days late: a minimum penalty that is adjusted for inflation each year, or 100% of the tax due, whichever is less |
| Interest | Set by the IRS each quarter, compounded daily on unpaid tax and penalties |
If you are owed a refund, there is generally no failure to file or failure to pay penalty, because there is no unpaid tax.
Unfiled Virginia returns
Virginia penalties are steeper per month than federal ones, so unfiled Virginia returns deserve the same attention.
| Virginia charge | How it works |
|---|---|
| Late filing | 6% of the tax due per month, up to 30%, if filed more than six months after the due date |
| Late payment | 6% of the tax due per month, up to 30% |
| Extension penalty | 2% per month, up to 12%, if filed within the extension period but less than 90% was paid on time |
| Interest | Charged on unpaid tax until paid |
Virginia receives IRS data, so a federal catch up often triggers Virginia bills if the state returns are not filed at the same time. If you lived in DC or Maryland for any of those years, those returns may be due too. See our DMV multi state tax guide.
How to get penalties removed
First time penalty abatement
The IRS will often remove failure to file, failure to pay and failure to deposit penalties for one tax year if you have a clean record. You generally qualify if:
- You had no significant penalties for the three tax years before
- You have filed all currently required returns, or have a valid extension
- You have paid, or arranged to pay, the tax due
Because it looks back three years, it usually helps only the earliest missed year. Ask for it on the year with the largest penalty you can.
Reasonable cause
For other years, you may still get relief if something outside your control caused the delay, such as a serious illness, a death in the family, a disaster or records you could not get. Keep documents that show the dates.
Good to know: Interest generally cannot be removed, but the interest charged on a penalty goes away when the penalty does.
If you cannot pay in full
File anyway. Then pick the option that fits your situation.
| Option | Who it fits | Setup cost |
|---|---|---|
| Short term plan, up to 180 days | Individuals who owe less than $100,000 | No fee |
| Long term installment agreement | Individuals who owe $50,000 or less and have filed all required returns | A setup fee that depends on how you apply and pay; waived or reduced for low income taxpayers |
| Currently not collectible | People who cannot cover basic living expenses | No fee, but interest keeps growing |
| Offer in compromise | People who cannot realistically pay the full balance | Application fee unless low income |
Virginia Tax offers its own payment plans for state balances, and many can be set up online.
Your catch up plan, step by step
- Pull IRS wage and income and account transcripts for the last six to ten years.
- Make a list of which years are unfiled at the IRS and with Virginia.
- Gather your own records for income and expenses that transcripts do not show.
- Prepare the returns, newest year first, using each year's own forms and rules.
- File the current and two prior years electronically and mail the older ones.
- Request first time abatement or reasonable cause relief once the returns are processed.
- Set up a payment plan for any balance, then make estimated payments going forward. See our guide to quarterly estimated taxes.
Unfiled tax return FAQs
What happens if you don't file taxes for 5 years?
Penalties and interest build on any tax owed, refunds for the oldest years expire after three years and the IRS may file substitute returns that leave out your deductions. The IRS can then collect through liens, levies and wage garnishment. Filing the missing years stops the late filing penalty from growing.
Can I still get a refund if I didn't file?
Only for about the last three years. Tax year 2023 refunds can be claimed until April 15, 2027. Refunds for 2022 and earlier have expired, but you may still need to file those returns.
Can I file old tax returns electronically?
Usually only the current year and the two prior years can be filed electronically. Older returns are printed on that year's forms and mailed to the IRS.
Will I go to jail for not filing taxes?
Criminal cases are rare and are generally reserved for willful evasion, such as hiding income. People who come forward and file before the IRS contacts them are in a far better position than those who wait.
Do I have to file if I didn't make much money?
Maybe not. If your income was below the filing threshold for your filing status, you may not have had to file. Self employed people must file once net earnings reach $400, and filing can still pay off if tax was withheld or you qualify for credits.
Does first time penalty abatement apply to every year I missed?
Usually not. It looks at your record for the three prior years, so it typically helps only the earliest year in a string of missed returns. Later years may still qualify for reasonable cause relief.
Can I set up an IRS payment plan if I have unfiled returns?
Not a long term plan. The IRS requires all required returns to be filed first. Once you are current, individuals who owe $50,000 or less can usually apply online.
Get back on track
We prepare past due federal and Virginia returns, rebuild missing books, help you respond to notices and request penalty relief. Learn more about our IRS notices and back taxes, individual tax preparation and bookkeeping cleanup services.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
