What Happens If You Don't File a Tax Return

IRS problems increase if you do not file a tax return. Statutes of limitations and timelines are provided by the Tax Code so the IRS can pursue nonfilers.

Criminal: If the IRS gets you within six years of the tax return's deadline, you'll be facing criminal charges.

Civil: Civil penalties may be imposed on you without a time limit, so interest and penalties will be escalating on your tax debt forever.

IRS policy: The IRS does not usually pursue a nonfiler after six years from the filing due date.

If you need to pay taxes and don't file a tax return, it's a criminal offense. You may be fined up to $25000 each year and/or sentenced to 1 year in prison for each unfiled year.

If you need to pay taxes and you filed your tax return but didn't pay them, there is no criminal charge. Still, the unpaid tax is subjected to penalties and interest.

How the IRS pursues nonfilers include:

• The Computerized Information Returns Program (IRP). The program matches information documents against tax returns you've filed. A TDI or Taxpayer Delinquency Investigation will be initiated if the IRS can't find any proof that you filed a tax return. You'll receive notices from the IRS, then phone calls or even more letters, and finally a revenue officer might start searching for you.
• Nonfilers are contacted in 4 different ways. Other methods will be employed if you don't reply to one:
  • Service Center written request. You'll get three notices in a 16-week period.
  • A taxpayer service representative will call you. At this time, you'll be given a due date to file your tax returns.
  • Call or visit from a revenue agent or officer. You will be given a due date to file your returns with the officer or they'll offer to help you prepare your returns. (If you still don't file the returns, the IRS can legally prepare them for you.)
  • Visit from special agent. If this happens, it means you are subject to a criminal investigation.

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