Can You File Taxes If You Didn’t File Last Year?

It is possible to file tax returns even if you missed previous years. This guide details the implications of not filing, steps to prepare past-due returns, and what to expect after submission.

Consequences of Not Filing

Failing to file a required tax return carries several negative consequences, including various penalties and accrued interest. The IRS imposes a “failure to file” penalty under Internal Revenue Code Section 6651. This penalty is 5% of the unpaid tax for each month or part of a month a return is late, capping at a maximum of 25% of your unpaid taxes. If a return is more than 60 days late, a minimum penalty also applies, which is the lesser of a specific dollar amount (e.g., $435 for returns due in 2025) or 100% of the tax owed.

A “failure to pay” penalty may also be assessed under Internal Revenue Code Section 6651 if taxes are not paid by the due date. This penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, also with a maximum of 25% of the unpaid taxes. When both penalties apply in the same month, the failure to file penalty is reduced by the amount of the failure to pay penalty. Interest also accrues on any underpayments from the original due date until the tax is fully paid, compounded daily. For instance, the interest rate for underpayments for individuals was 7% per year for the first half of 2025.

Not filing can lead to the forfeiture of any potential refund. Taxpayers have a three-year window from the original due date of the return to claim a refund, as specified in Internal Revenue Code Section 6511. If a return claiming a refund is not filed within this timeframe, the refund is lost. A history of unfiled tax returns can create difficulties with loan applications, such as for mortgages, or even impact future Social Security benefits.

Information Needed to File Past Due Returns

Before preparing past-due tax returns, gathering all necessary financial documents and information for each specific tax year is important. This includes records of all income received, such as W-2 forms for wages and various 1099 forms for other income types (e.g., 1099-INT for interest, 1099-DIV for dividends, 1099-NEC for nonemployee compensation, or 1099-G for unemployment). These forms contain amounts that must be accurately transferred to your tax return.

If you are missing any of these income documents, you can often obtain copies directly from the employer or payer. Alternatively, the IRS offers a “Get Transcript” service, which allows you to access wage and income transcripts that show information reported to the IRS by third parties, such as employers and financial institutions, for the past 10 years. While these transcripts do not provide the exact W-2 or 1099 forms, they contain the critical income figures needed for tax preparation. To request a transcript, you can do so online, by phone, or by mail using Form 4506-T.

You will need documentation for any deductions or credits you plan to claim. This could include receipts for itemized deductions, records of self-employment expenses, Form 1098 for mortgage interest paid, or Form 1098-E for student loan interest. Each tax year requires specific tax forms, such as Form 1040, available on the IRS website for prior years. Ensure you have the correct year’s form and all supporting documentation for accurate preparation.

How to File Your Past Due Returns

Once you have gathered all the necessary information and completed the tax forms for each delinquent year, the next step involves submitting them to the IRS. Unlike current-year returns, past-due tax returns cannot be e-filed. They must be submitted by mail. Each tax year’s return should be prepared and mailed in a separate envelope.

Each individual envelope should contain the completed tax return for that specific year, along with all supporting schedules and forms pertinent to that tax period. For example, a 2021 Form 1040 would be in one envelope, and a 2020 Form 1040 in another, each with its own W-2s, 1099s, and deduction statements. The correct mailing address for delinquent returns varies based on your state of residence, and these addresses are provided in the instructions for the tax forms on the IRS website.

Send your past-due returns via certified mail with a return receipt requested. This provides proof of mailing and confirmation of delivery, which can be important for your records and in case any questions arise regarding the submission date. Keeping copies of everything you mail, including the certified mail receipts, is a good practice for your financial records.

What Happens After Filing

After you mail your past-due tax returns, the processing time can be longer than for electronically filed current-year returns. Mailed delinquent returns may take several weeks or even months to process. The IRS will communicate with you through official notices and correspondence mailed to the address on file.

If a refund is due, the IRS will issue it after processing your return. This refund may be sent via direct deposit, if you provided bank information, or as a paper check. However, if you have any outstanding federal or state debts, such as unpaid taxes from other years, child support, or other federal obligations, your refund may be offset to cover those debts.

If you owe tax on the past-due returns, the IRS will send a notice detailing the amount due, including any accrued penalties and interest. You will then have several options to make a payment, such as using IRS Direct Pay, which allows electronic payments directly from your bank account. If you cannot pay the full amount immediately, you may be able to set up an installment agreement with the IRS, allowing you to make monthly payments over a period of time. Entering into an installment agreement can also reduce the failure-to-pay penalty rate.