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Unfiled Tax Returns? Learn What Happens If You Don’t File Taxes for Years, Consequences & Solutions
- Rona Law Firm
- Sep 25
- 2 min read
If you haven’t filed taxes in years, you’re not alone. Thousands of people put it off because of fear, confusion, or financial stress. But the longer you wait, the bigger the problem gets. The IRS and California Franchise Tax Board (FTB) don’t forget—and ignoring it can lead to penalties, liens, and even wage garnishment.
As a tax resolution attorney in Southern California, I help clients every day who haven’t filed taxes in 2, 5, even 10+ years. Here’s what really happens if you don’t file your taxes—and how to fix it before it gets worse.
What Happens If You Don’t File Taxes?
IRS Penalties Add Up: The IRS charges a failure-to-file penalty of 5% of the tax owed per month (up to 25%). On top of that, a failure-to-pay penalty and interest stack up.
The IRS or FTB May File For You: If you don’t file, the IRS creates what’s called a Substitute for Return (SFR). This usually means no deductions, no credits, and a much higher bill.
Wage Garnishment or Bank Levies: If taxes remain unpaid, the IRS can garnish your wages or freeze your bank account.
Liens on Your Home or Property: The IRS or FTB can file a tax lien, which shows up on your credit report and title records. This can block you from selling or refinancing property.
Criminal Charges (Rare, but Possible): In extreme cases, chronic non-filing can lead to criminal tax charges.
How Many Years of Unfiled Tax Returns?
The IRS usually requires at least the last 6 years of unfiled returns, though sometimes more depending on your situation. The good news? Filing voluntarily before the IRS chases you can reduce penalties and show “good faith.”
How a Tax Lawyer Can Help
A tax lawyer can:
File back taxes quickly and accurately.
Negotiate with the IRS/FTB to reduce or remove penalties.
Protect your income and assets from levies and garnishments.
Explore Offer in Compromise or payment plans to settle tax debt.
Take Action Now
The worst thing you can do with unfiled taxes is wait longer. The IRS and FTB move faster than people think, and once liens or garnishments hit, options become limited.
👉 If you’re in the United States and have unfiled tax returns, call Rona Law Firm today. We’ll protect your income, your property, and give you peace of mind.
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