​Can you still file taxes from previous years in 2025? How to avoid interest and penalties 

06/02/2025
–
10:51
CSTIf you missed filing your tax returns for previous years, you can still submit them in 2025. The IRS allows taxpayers to file late tax returns, but failing to do so promptly can lead to penalties, interest, and the loss of potential refunds. Whether you owe taxes or expect a refund, it is essential to understand how to handle past-due tax filings and minimize financial consequences.The IRS generally allows taxpayers to file tax returns for previous years, even if they are long overdue. However, waiting too long can have significant consequences. If you are due a refund, the IRS only allows you to claim it for up to three years from the original tax deadline. For example, if you were owed a refund for your 2021 tax return, you must file it by April 15, 2025, or the refund will be forfeited.On the other hand, if you owe taxes, there is no time limit for the IRS to collect what you owe. The longer you delay filing, the more penalties and interest accrue. Even if you cannot afford to pay the full amount immediately, filing your return as soon as possible helps reduce penalties and keeps you in good standing with the IRS.Filing as soon as possible is the best way to avoid additional fees. The IRS imposes two primary penalties on late tax filings.The Failure to File Penalty applies when you do not submit a tax return by the deadline. It accrues at a rate of 5 percent per month on the unpaid tax balance, up to a maximum of 25 percent. If your return is more than 60 days late, the minimum penalty is $485 or 100 percent of the unpaid tax, whichever is lower.The Failure to Pay Penalty is charged when you do not pay the full amount owed by the original tax deadline. This penalty is lower than the failure to file penalty, at 0.5 percent per month of the unpaid tax balance. However, it continues accruing until the full amount is paid, up to 25 percent of the total amount due.The IRS also charges interest on unpaid taxes, which compounds daily. The current interest rate changes quarterly but is based on the federal short-term rate plus 3 percent. Unlike penalties, interest continues accumulating indefinitely until the tax debt is fully paid.If you owe taxes and cannot pay in full, the IRS offers payment plans and installment agreements to help you manage your debt. Applying for an installment plan can prevent further penalties and keep you compliant with IRS regulations. In some cases, you may qualify for penalty abatement, which allows the IRS to waive certain penalties if you can demonstrate reasonable cause for not filing on time.To submit a tax return from a previous year, you must use the correct tax forms for that specific year. These forms can be found on the IRS website or obtained from a tax professional. Online e-filing is only available for the most recent years, so older returns must be mailed to the IRS.Gather all necessary tax documents, including W-2s, 1099s, and records of deductions or credits. If you are missing any docu