Call for free Tax Review

What happens if you don’t file your taxes?

Dodging the Taxman? Understand the Implications of Ignoring Tax Filing Duties

What happens if i don't file my taxes?

Introduction: What happens if you don't file your taxes?

 Feeling nervous about filing taxes? You’re not alone. The whole process can seem daunting. However, understanding the consequences of ignoring this obligation is crucial. The IRS means business when it comes to tax evasion. So, if you give tax filing a miss, you might find yourself in a pretty sticky situation. Let’s unpack what happens if you don’t file taxes and how you can avert the headaches that come along with it.

The Penalties of Not Filing Taxes

When you’re late to the tax filing party, you might have to brace yourself for a handful of unpleasant repercussions such as:

  • The Failure to File Penalty: This can be a real bummer, slapping you with 5% of your unpaid taxes for each month (or partial month) your return is overdue, capped at 25% of your unpaid taxes.
  • The Failure to Pay Penalty: Adding salt to the wound, there’s a failure to pay penalty of 0.5% of your unpaid taxes for each month (or part of a month) your payment is late, also maxing out at 25% of your unpaid taxes.
  • Interest on Late Payments: To top it off, an interest charge on your late payments is also on the cards. The current interest rate stands at 6% per annum.
  • The IRS May File a Substitute Return for You: If you ignore your tax filing duties, the IRS can step in and prepare a substitute return for you. But watch out! Their guess might not hit the mark, potentially causing you to cough up more taxes than you ought to.
  • Criminal Prosecution: In extreme cases, not filing taxes can land you in legal hot water. If you deliberately duck out on filing your tax return, you might be staring down the barrel of criminal prosecution, hefty fines up to $250,000, a five-year jail term, or both.

Avoiding the Unpleasant Consequences

The penalties sound rough, right? Luckily, we’ve got some tips up our sleeves to help you dodge them:

  • File Your Taxes Promptly: The magic deadline for filing taxes is April 15th of the following year. If you need a raincheck, apply for an extension.
  • Settle Your Tax Bill Without Delay: If you can’t clear your tax bill all at once, don’t lose sleep over it. You can establish a payment plan with the IRS.

Need a Helping Hand with Your Taxes? Plenty of Help is Just Around the Corner!

Got cold feet about filing your taxes? Don’t sweat it! There are a number of resources at your disposal:

  • Free Tax Assistance: The IRS rolls out the red carpet for those meeting certain income requirements, offering free tax help. The IRS website houses a list of free tax preparation sites.
  • Hire a Tax Professional: If you’re more comfortable leaving it to the experts, hiring a tax professional to dot the i’s and cross the t’s on your tax filing is a great option.

Even if they owe taxes, they should keep in mind that while there is a penalty for not paying on time, the penalty for not filing on time is approximately 10 times higher,

Bruce I. Friedland, an I.R.S. Spokesperson

The Bottom Line: Now you Know- What Happens if you don't file your taxes.

Don’t forget, filing taxes isn’t an optional chore but a legal must-do. If you give it a miss, you’re looking at fines, interest, and the ominous cloud of possible jail time. The key takeaway is always to file your taxes on time, even if you can’t pay them in full. There are numerous resources and services available, including free tax help from the IRS and assistance from tax professionals like Priority Tax Relief.

You’re not alone in this. Many people have been in your shoes and have successfully resolved their tax issues. But it’s essential to act quickly to minimize the damage and start working towards a resolution. The longer you wait, the more complicated—and costly—the situation can become. So, take a deep breath, reach out for help, and begin the journey towards resolving your tax issues today.

Frequently Asked Questions: What happens if you don't file your taxes?

If you don’t file your taxes, you could face several consequences. These include failure to file penalties, which is 5% of your unpaid taxes per month (or part of a month) your return is late, capped at 25% of your unpaid taxes. There’s also the failure to pay penalty of 0.5% of your unpaid taxes per month (or part of a month) your payment is late, maxing out at 25%. Additionally, you’ll accrue interest on late payments, currently set at 6% per annum. In some instances, the IRS may file a substitute return on your behalf, which could lead to you owing more taxes. In extreme cases, you could face criminal prosecution, hefty fines up to $250,000, a five-year jail term, or both.

To avoid penalties, it’s best to file your taxes by the deadline, which is typically April 15th of the following year. If you need more time, apply for an extension. Even if you can’t pay your entire tax bill at once, don’t avoid filing. You can set up a payment plan with the IRS to gradually pay off your taxes.

There are several resources available if you need help with tax filing. The IRS provides free tax assistance for those who meet certain income requirements. You can also hire a tax professional to help you file correctly and ensure you’re not paying more than you owe.

If you’re unable to pay your full tax bill on time, it’s still crucial to file your tax return. You can then establish a payment plan with the IRS. This way, you’ll avoid the failure to file penalty, even if you can’t pay all your taxes immediately.

 If you ignore your tax filing duties, the IRS can file a substitute return on your behalf. However, they may not have all the necessary information to claim any deductions or credits you’re entitled to, potentially resulting in a higher tax bill. To avoid this, it’s best to file your own return and provide all the relevant information.


The New York Times –

IRS Topic No. 153, What to Do if You Haven’t Filed Your Tax Return:

Failure to File Penalty | Internal Revenue Service:

Disclaimer: The provided information aims to serve general informational purposes and is not intended as legal advice. Consult with a lawyer or tax professional for guidance that fits your specific tax situation.

Get a free tax consultation:

I acknowledge that by clicking “SUBMIT” I agree to be contacted via telemarketing calls and/or SMS/MMS text messages via telephone, mobile device and/or email. By doing so I waive any registration to any state, federal or corporate Do Not Call registry. I understand that calls to me and from me may be recorded for quality assurance purposes. I agree to receive approximately 10 messages every month and understand message & data rates may apply. Case results vary and are specific to each applicant qualifications. Call for complete details.

Table of Contents


 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.


Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

Need expert help? Looking to get back on track?