Unfiled Tax Returns

The IRS requires you to file tax returns for each year you have a filing obligation, regardless of whether you can pay the full amount. File your past‑due return the same way and to the same location as an on‑time return, and if you have a notice, send your return to the address listed on the notice.

Filing a past‑due return promptly has several benefits:

• Avoid or limit interest and penalties. Filing and paying now will reduce the late‑filing penalty and late‑payment penalty.
• Claim your refund. You risk losing any refund due if you do not file within three years of the return’s due date. The IRS may hold current refunds if one or more prior‑year returns are missing.
• Protect Social Security benefits. Self‑employment income is reported to the Social Security Administration only after you file; unfiled returns can reduce your future retirement or disability benefits.
• Facilitate loans. Mortgage lenders and financial institutions often require copies of filed tax returns; failure to file may delay or jeopardize loan approval.

If you cannot pay, you can request additional time (60‑120 days) via the Online Payment Agreement or by calling the IRS, and no user fee is charged. Those needing more time should request a long‑term payment plan or may qualify for an offer in compromise. If you refuse to file, the IRS may file a substitute return for you, often without giving credit for deductions or exemptions. You will receive a Notice of Deficiency (CP3219N) giving you 90 days to file your own return or petition the Tax Court. Once a substitute return leads to a tax assessment, the IRS can issue a levy or file a federal tax lien and may pursue additional penalties or criminal charges for repeated non‑filing. It is always in your best interest to file your own return, even if the IRS has prepared a substitute return, so you can claim any deductions or credits you are entitled to.