If You Haven’t Filed a Tax Return in a Long Time FAQ

Answers to commonly asked questions concerning tax return failure

Nonfilers in my state were granted amnesty. Can I ever expect for one from the IRS?

Amnesty periods, which allow nonfilers to come forward without being criminally punished or civilly penalized, are debated in Congress most years.

However, the IRS has always been hostile to tax amnesty legislation. The IRS’s logic is that once the amnesty period passes, a large percentage of taxpayers will not file because they anticipate the IRS to have another amnesty program. However, based on the success of states that have tried amnesty programs, many tax specialists believe the IRS is incorrect.

If I wish to clean my reputation, should I submit tax returns for years I didn’t file?

Filing old returns, at least for the last six years, may be a smart idea. If you voluntarily submit your previous tax returns before the IRS tells you that you are under criminal investigation, the IRS will normally not pursue you criminally for failing to file those tax returns in the first place. Stand Up to the IRS, by attorney Frederick W. Daily, has further information. It has a section on what to do if you haven’t filed, as well as a section on tax fraud and offenses.

How long am I obligated if I have not submitted tax returns in previous years?

At least six years, and maybe indefinitely. While the government has just six years from the due date of the nonfiled return to pursue you criminally, there is no time limit for collecting taxes and charging financial penalties for not submitting. The audit time restriction of three years and the collection time limit of ten years do not begin to run until you actually submit a return.

In practice, though, if you haven’t heard from the IRS in six years, you shouldn’t be concerned about taxes owing on an unfiled return. The IRS typically does not pursue nonfilers beyond six years unless the IRS initiates an inquiry prior to the six-year period and you owe a significant amount of taxes. The IRS regularly purges its computer information after six years.