If you don't file, the IRS can file a substitute return for you. That return may skip deductions you could have claimed. It leads to a bill, then liens and levies if you don't pay. Filing your own return is usually better.
Who it fits
People with one or more years of returns not filed.
- Who it fits
- Haven't filed
- Cost
- Late filing penalty: 5% a month, up to 25%. Minimum $525 for returns over 60 days late that were due after Dec 31, 2025.
- IRS form
- Your regular return for each year, Form 4506-T for income records
What to know first
It is 5% of the unpaid tax for each month or part of a month late, up to 25%.
For returns due after Dec 31, 2025 that are more than 60 days late, the minimum is $525 or 100% of the tax owed, whichever is less.
A substitute return may not give you deductions you are owed. Then a 90 day letter, CP3219N, proposes the tax.
To claim a refund, you must file within 3 years of the return due date. The IRS also holds refunds when other returns are past due.
If you don't file, your self employment income is not reported, so you don't earn Social Security credits for it.
Use Form 4506-T and check line 8, or Get Transcript, to see wage and income info the IRS has.
Common questions
Should I file even if I can't pay?
Yes. The IRS says file every return that is due, even if you can't pay in full. Then look at payment options.
Source: IRS: Filing past due tax returns
How long does a late return take to process?
About 6 weeks for an accurate past due return, the IRS says.
Source: IRS: Filing past due tax returns
Can I go to jail for not filing?
The IRS says people who repeatedly don't file could face more penalties and criminal prosecution.
Source: IRS: Filing past due tax returns
Results depend on your situation. Not every case qualifies.
