Tax Returns: If You Haven't Filed in a While FAQ

Maybe. Amnesty periods, which let nonfilers come forward without being criminally prosecuted or civilly fined, are discussed in Congress most years.

But the IRS has always opposed tax amnesty legislation. The IRS's reasoning is that, after the amnesty period expires, significant numbers of people won't file, expecting the IRS to have another amnesty program. Based on the success of the states that are trying amnesty programs, however, many tax professionals think the IRS is wrong.

If you haven't filed a tax return for a year or more, it's not too late. The IRS has a policy of not criminally prosecuting those who file before they are contacted by the IRS. (IR-92-114). Also, the IRS is often more gentle in collecting from voluntary filers than from the ones they catch.

At least six years. The government has six years from the date the nonfiled return was due to criminally charge you with failing to file. There is no time limit, however, for assessing civil penalties for not filing. If you didn't file for 1998, you still have an obligation if you owed taxes for that year. Not until you actually file a return does the normal audit time limit—3 years—and collection time limit—10 years—start to run.

Don't over-worry about a nonfiled return due more than six years ago if you haven't heard from the IRS. The IRS usually doesn't go after nonfilers after six years—unless the IRS began its investigation before the six years elapsed. After six years, the IRS transfers its computer files to tape for storage.