Behind on filing? Here is how past-due returns work
The IRS says to file every past-due return now, even if you cannot pay in full, rather than waiting to hear from it. Filing sooner limits interest and penalties and protects refunds and credits. If the IRS prepared a return for you, filing your own is generally in your interest.
Where you stand
Falling behind on filing happens for many reasons: a hard year, a move, a business that took over everything, or simply dread of opening a pile of paperwork. The longer it goes, the heavier it feels, and that weight is often the biggest obstacle. The mechanics are more manageable than most people expect.
The IRS page on past-due returns is direct: file every return that is due, even if you cannot pay in full, using the same method and address as an on-time return, or the address on an IRS notice if you received one. It adds that you should not wait for the IRS to contact you. Filing sooner limits interest and penalties, and it protects your refund, Social Security credits and loan eligibility.
What the penalties look like
The late-filing penalty is generally 5% of the unpaid tax for each month or part of a month the return is late, up to 25%. For returns that are more than 60 days late, there is a minimum penalty, and that amount is adjusted over time, so check the IRS page or your notice for the current figure. The late-payment penalty is separate and is generally 0.5% of the unpaid tax per month. The IRS reduces the late-filing penalty by the late-payment penalty for the same month.
A practical point: an extension to file does not extend the time to pay. The bigger risk with an old refund is the time limit for claiming it. The IRS page says you generally must file within 3 years of the due date to claim a refund or credits such as the EITC, and that the IRS holds refunds while past-due returns exist.
Notices you may see for missing returns
Two common notices are the CP59 and the CP515. A CP59 says the IRS has no record of your prior-year personal return. It is a request to confirm filing status, not a bill. It asks you to file now, or to tell the IRS why you are not required to file. A CP515 is similar: it says the IRS has no record of one or more prior-year returns and believes you need to file. Check the name, taxpayer ID and tax year on the notice against your records, because a mismatch is one way these notices go astray.
If you already filed but the IRS shows no receipt, mail a signed, dated copy of the return, with your IP PIN if you have one. To explain why you do not need to file, or to dispute the notice, the IRS points to Form 15103. Your notice shows where to send it and by when.
If the IRS prepares a return for you
When no return arrives, the IRS may file a substitute return based on income reports it received from employers and banks. The IRS says that return may leave out deductions or exemptions you qualify for. It then sends a notice of deficiency, listed as CP3219N on the IRS pages, which gives you 90 days to file or petition the Tax Court. The IRS page says no extension is available after that notice.
The IRS also states that it is still in your best interest to file your own return, because it lets you claim exemptions, credits and deductions you qualify for, and the IRS generally adjusts your account to the correct figures. If you got a CP2566 or CP3219N, read it closely and compare it with your own income records.
How long the IRS can look back
The usual time limit for the IRS to assess additional tax is 3 years after you file a return. When no return was filed, that clock does not start, and there is no time limit on assessment. That is one practical reason not to leave years open indefinitely. The IRS past-due returns page sets no general lookback limit, so ask the IRS or a qualified professional how many years it is asking you to file.
Getting organized, step by step
Start with the oldest year and collect your income documents, such as W-2s and 1099s, along with any IRS notices you have received. File using the same method and address as an on-time return, or the address on an IRS notice if you received one. The IRS says it accepts e-filed prior-year returns for the last two years through providers that offer it; check with your provider for older years.
If you cannot pay what you owe, file anyway and then look at a payment plan. IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter you review and send yourself, which can help if a notice asks you to explain why a return is late. It does not prepare your tax returns, and it is not a CPA, enrolled agent or law firm. If several years are open or the amounts are large, a qualified tax professional may be a good partner.
Ready to respond?
Upload your IRS notice, answer a few questions, review the analysis and response strategy, fill in your details, and get a response letter you can copy or download as a PDF or DOCX file.
Start your response letterFrequently asked questions
Do I have to pay in full when I file a late return?
No. The IRS says to file even if you cannot pay in full. You can then look at payment options such as a payment plan, while penalties and interest continue on the unpaid part.
Is a CP59 notice a bill?
No. It says the IRS has no record of a prior-year return from you and asks you to file or explain why you do not need to. Check your notice for the date and instructions.
What if the IRS already filed a return for me?
The IRS says it is still in your best interest to file your own return, since a substitute return may leave out deductions or credits you qualify for.
Can I still get a refund for an old year?
Possibly, but there is a time limit. The IRS says you generally must file within 3 years of the due date to claim a refund or credits, and it holds refunds while past-due returns exist.