Who needs to file?
If you’re dealing with past-due tax returns, missing years of filings, or just worried about how far you can go without sending something to the Internal Revenue Service (IRS), in this blog, SCL Tax Service professionals in the Bronx explain what you’re up against. Without fluff. We just help you discover what happens when you skip filing taxes for years. First, you need to know if you actually had to file in those years.
If your income was below a certain level, you might not have needed to file. But if you did have enough income, then skipping years means trouble. Failing to file when you should set up the rest of the problem: now you have “consequences of not filing taxes for years.”
The cost of skipping filings: penalties and interest
When you don’t file, the IRS applies two main types of penalties: the failure to file tax return consequences and the failure to pay penalties (if you owe taxes).
Failure to file a penalty
The penalty is 5% of the unpaid tax (after allowable credits and payments) for each month or part of a month your return is late, up to a maximum of 25%. If your return is more than 60 days late, the IRS charges a minimum failure to file penalty equal to the amount the IRS sets for that year or 100 % of the tax owed, whichever is less.
Failure to pay the penalty
If you filed (or eventually file) but didn’t pay, you get a penalty of 0.5% per month up to 25% of the unpaid tax. Interest accrues on unpaid tax from the original due date until paid in full.
Other costs: substitute returns and loss of credits
If you don’t file, the IRS may file a Substitute for Return (SFR) on your behalf. That return uses info they have (W-2s, 1099s) but won’t include deductions or credits you might get. This may increase what you owe. If you are owed a refund and you wait too long, you may lose the chance to claim it. Generally, you have 3 years after the original due date to file and claim a refund.
Testimonials
★★★★★
"Susan L. has been handling our taxes since 2014, and I have to say that through all our years together she has done an exceptional job getting our refunds. Yes a year or two we had to pay, but it was definitely not what we expected. We moved to a Island far away, and we thank God that Susan was licensed there too. Thank you Susan to you and your team of professionals at the Katona, Bronx New York Office. Our fee has been moderate compared to the returns we have received with SCL Tax Service. Thanks again! Here's to the next tax year 2025!!"
★★★★★
Susan, Tom and Stephanie are GREAT !!! I would recommend them to any large or small business owner. Susan Letizia, the Enrolled Agent, thrived to reduce any tax bill we had. She dedicated a lot of her time to making sure my Business returns were filed correctly. If you have a mess on your hands, SCL Tax Services is your go to. Thumbs up SCL
★★★★★
Two of the best qualities you can have in an accounting firm are:
1-Absolute Competence and Expertise
2-An in-person family level of customer attention
SCL is one of those rare ones that give you both. Susan, Tom, and Stephanie are all warm, friendly, and on top of every last detail. When I needed to incorporate my new company, they basically handled every step, and they were always happy to answer my questions to help me make certain I understood everything and was doing my part. Highly recommended. They'll make sure your tax returns are handled in the very best way.
★★★★★
“I am very pleased with the service to have my taxes done by Stephanie. It’s my 2nd year and it’s been a pleasure and very quick. I will continue to have my taxes done at SCL Taxes by Stephanie. Great customer service, always sending referrals.”
Expert Bronx Tax Services
Over several years: how the damage grows
When you skip one year, you may eventually fix it. Skip several years, and the consequences stack. Multiple years of unpaid tax mean multiple years of failure to file penalties, failure to pay penalties, and years of interest. The longer you wait, the more you owe. When you never file, the usual time limits to assess tax don’t begin to run. In short, the IRS can assess tax for years after the missed returns until an assessment is made; once a tax is assessed, the IRS generally has 10 years from that assessment date to collect it.
If you never file and the IRS believes you are willfully hiding income or evading taxes, you could face criminal penalties.
Financial and life-impact consequences
Skipping filing for years does more than just cost money; it can disrupt many parts of your life.:
- The IRS may file a federal tax lien against your property once it assesses taxes owed. A lien is a legal claim on your property. They may levy (seize) assets: bank accounts, wages, etc., to collect.
- Your credit or ability to get a loan could suffer because you lack filed returns. If you were eligible for credits or reductions (like the Earned Income Tax Credit), you lose them if you don’t file within the time limit.
What if you don’t owe taxes (or you’re due a refund)?
Good news: if you don’t owe money, the penalties might not apply. But there are still downsides. If you are due a refund but don’t file, you’ll forfeit the refund after a certain time (usually 3 years). That’s money you never get back. You might still want to file so you establish a tax history, qualify for credits, or verify your income for loans. The IRS won’t necessarily penalize you for not filing if you aren’t required to and don’t owe. But if you should have filed, you’re opening the door to the above penalties.
What you should do now
If you realize you skipped filings for several years, take action. Ignoring it will only cost more. Here’s a practical plan:
- Gather your income records for the years you skipped: W-2s, 1099s, and any other income info.
- Contact a tax service like SCL Tax Services based in Bronx, NY, to help you figure out which years you must file and prepare them accurately.
- File missing returns as soon as you can, even if you can’t pay what you owe. Filing will stop additional failure-to-file penalties from growing further.
- If you owe taxes, talk about payment options with the IRS: installment plans, Offer in Compromise, etc.
- If you’re due refunds, file within the 3-year window so you don’t lose your money.
- Keep careful records going forward and build a habit of filing on time.
Why it matters to work with a pro
At SCL Tax Services in the Bronx, we handle past-due filings all the time. We know how to:
- Determine which years you need to file.
- Estimate what you owe (or refund you’re due).
- Submit missing returns correctly so you minimize extra penalties.
- Negotiate with the Internal Revenue Service (IRS) if you owe large sums.
- Help you create a plan so you stay current.
Ignoring missing filings is not a strategy; it makes the problem bigger. A professional helps you face the issue now and stop it from growing.
How many years can I go without filing?
There’s no fixed limit on how many years you can skip if you never file. But the penalties keep stacking, and the IRS can act when it chooses.
What are the main penalties for not filing taxes for years?
The main penalties are the failure to file tax return consequences (5% per month up to 25%) and the failure to pay penalty (0.5% per month up to 25%) plus interest.
Could I face criminal charges for not filing taxes for years?
In extreme cases where the IRS sees willful evasion, yes. Most people don’t face that, but the risk is real.
What’s the best first step if I skipped filings?
Start filing your missing years as soon as possible. Even if you can’t pay now, filing will stop more penalties from growing and get you back on track.