Yes, failing to file your taxes is illegal. The IRS can impose heavy penalties, seize assets, and even pursue criminal charges for tax evasion. While not everyone is required to file a return, if you meet filing thresholds or expect a refund, you must file.
Do You Have to File Taxes Every Year?
- Not everyone is required to file. Filing depends on your income level and filing status.
- If your income is below the standard deduction for your status, you may not need to file.
- But if you’re due a refund, you must still file to claim it.
Is It Illegal to Not File Taxes?
Yes. Not filing taxes is against the law. The IRS penalizes both failure to file and failure to pay. While the agency doesn’t prosecute every case, ignoring your tax obligations puts you at risk of:
- Failure-to-file penalties: 5% per month up to 25%.
- Seizure of assets: Property, wages, or bank accounts may be taken.
- Tax evasion charges: In severe cases, you could face criminal prosecution and prison time.
- Lost refunds: If you don’t file within the deadline, you lose any refund owed.
Is It Illegal Not to File a Tax Return?
Yes. Filing is a legal requirement if you meet the threshold. Even if you cannot pay in full, you must still file to avoid harsher penalties.
Is Not Doing Taxes Illegal?
Yes. Ignoring your taxes leads to:
- Daily accruing interest.
- Late payment penalties.
- Risk of IRS liens, levies, or garnishments.
The IRS may not act immediately, but eventually, your case will surface, and enforcement will begin.
Filing an Extension
Missed the deadline? You can file for an extension until October 15.
- Must be requested before the April deadline.
- An extension delays paperwork, not payment—interest and penalties still apply if taxes remain unpaid.
What If You Can’t Pay Your Taxes Right Now?
The IRS offers several payment options:
- Full payment as soon as possible.
- Short-term plan (180 days or less) if you owe under $100,000.
- Long-term installment plan with monthly payments (generally for balances under $50,000).
- Formal Installment Agreement using IRS Form 9465.
Even if you can’t pay in full, setting up a plan avoids escalating enforcement actions.
Is It a Crime to Not File Taxes?
In some cases, yes. Repeated or willful failure to file can be prosecuted as tax evasion—a felony that carries fines and potential prison time.
Why Acting Quickly Matters
Tax filing isn’t optional. The longer you wait, the higher the costs and risks. Filing your return—even if you can’t pay—protects you from the worst penalties and buys time to explore payment options.
Next Steps
- Determine if you’re required to file this year.
- File your return on time, even if you can’t pay.
- If you missed the deadline, request an extension immediately.
- Explore payment plans or installment agreements with the IRS.
- Get professional help if you’re overwhelmed.
Need legal advice or help negotiating with the IRS? Precision Tax Relief offers free, confidential consultations. Call us today to protect your income, assets, and peace of mind.
Frequently Asked Questions
Taxes contribute to government services and infrastructure to improve society’s well-being and economic stability.
Yes, it’s considered tax evasion by the federal government.
Yes, it’s possible to go to jail because not paying taxes is considered a federal crime.
Even if you can’t pay your taxes in full, it’s crucial to file your returns to avoid penalties.
Late filing may result in penalties and interest charges, increasing the amount owed to the IRS.
The IRS may impose penalties, interest, and collection actions to recover unpaid taxes.
Yes, interest accrues on unpaid taxes from the filing deadline.
The IRS may pursue legal action, including tax liens and civil or criminal charges.
The IRS offers payment options, such as installment agreements, for those unable to pay in full.
While you won’t be penalized for not owing taxes, filing is still necessary for certain benefits and to prevent the IRS from filing on your behalf without claiming deductions or credits.