There is no IRS statute of limitations on unfiled tax returns — until you file, the IRS can audit you indefinately.
For U.S. expats with unfiled tax returns, this means the IRS can go back decades, issue a tax assessment, and begin collection actions with no warning. The protections offered by the typical statute of limitations — such as the 3-year audit — only apply after you file a tax return. Until then, you remain permanently exposed.
Already filed your returns and want to know how far back the IRS can audit you? Learn about the 3-year, 6-year, and unlimited audit rules — and what can trigger them — in our full guide: How Far Back Can the IRS Audit You
What is the statute of limitations if you haven’t filed?
There is no limit. You must file a tax return before the IRS’s time to assess tax, audit, or collect starts running. Without a return, there is no assessment statute expiration date and no restriction on how far back the IRS can go to calculate tax debt, issue a tax bill, or pursue unpaid taxes.
This leaves you permanently exposed to enforcement actions for any unfiled tax returns, regardless of how old the tax year is.
What happens if the IRS files a substitute return for you?
If you don’t file tax returns, the IRS typically prepares a substitute return using limited data from wage and income transcripts. This version excludes estimated tax payments, tax credits, and deductions — resulting in a higher tax liability than if you had filed voluntarily.
Once the IRS assesses tax, the 10-year collection statute expiration date begins, but enforcement like tax liens or frozen bank accounts can occur quickly.
What should I do if I haven’t filed taxes in 10 years?
You don’t need to file all 10 years of unfiled tax returns to become compliant. From a statutory and procedural standpoint:
- The statute of limitations to audit a properly filed tax return is generally 3 years from the later of the filing deadline or the date the return was filed.
- Therefore, you should file 3 years of delinquent tax returns.
- For FBAR compliance, the statute of limitations is 6 years, so you must file 6 years of FBARs.
Filing these 3 years of federal income tax returns and 6 years of FBARs is generally sufficient to bring a taxpayer back into compliance — especially if you’re eligible for the Streamlined Filing Compliance Procedures, which is an IRS voluntary disclosure program. It allows expats to catch up on unfiled tax obligations without penalties, provided their not filing was non-willful.
If, for any reason, you don’t qualify for Streamlined (e.g., the IRS believes your not filing was willful or you’re under exam), you can still file an equivalent to the Streamlined package — the same 3 years of tax filings and 6 years of FBARs. While you won’t get formal penalty relief, this approach is still the best path forward to demonstrate good faith and come back into compliance.
In either case, a tax attorney or qualified tax professional can help you prepare the correct filings, determine any tax liability, and establish payment arrangements for any resulting tax debt or unpaid taxes.
What are the consequences of not filing tax returns?
Failing to file a tax return leads to:
- Failure to file penalty: 5% of the unpaid tax per month, up to 25%
- Loss of refunds (after the refund statute period)
- Possible criminal charges in extreme tax evasion cases
- Forced tax assessment via substitute filing
- Collection enforcement: wage garnishments, tax liens, frozen bank accounts
- Ineligibility to contest amounts in tax court unless a return is filed
And importantly, limitations on unfiled tax returns mean these consequences can arise at any time period — there is no expiration date to protect you.
Still have questions about catching up on your taxes? Visit our FAQ on Filing Taxes Late — it covers everything from deadlines, penalties, and refunds to how many years you need to file.
How many years of unfiled returns should I file?
Although the IRS can demand older returns, it generally requires only six years of past tax returns unless fraud or tax evasion is suspected. Most expats who were under the filing threshold or whose filing status was unclear can become compliant by filing:
- 3 years of tax returns
- 6 years of FBARs
A tax professional can advise based on your filing rules, gross income, net self-employment income, and whether your case involves additional tax risks or special treatment under the tax code.
Why filing now matters
There is no statute of limitations until you file taxes. Until then, the IRS can assess tax, enforce collection, and pursue your tax liability for any tax year, at any time.
To stop the exposure and limit how long the IRS can audit or collect, file at least 3 years of tax returns and 6 years of FBARs, ideally through one of the IRS’ amnesty programs. This resets the statute of limitations, prevents a higher tax liability from substitute returns, and reduces the risk of penalties and enforcement.
