I've never filed taxes before - what happens now and what should I expect?

8 You're taking a great first step by addressing this now! The good news is that if you've been a W-2 employee, your employer has likely been withholding taxes from your paychecks already, which means you might actually be owed refunds for past years rather than owing money. First, don't panic about jail time. The IRS rarely pursues criminal charges for non-filing unless there's evidence of fraud or deliberate evasion. For someone in your situation who's voluntarily coming forward, they're much more interested in getting you compliant. You should start by gathering all your W-2s from previous years. If you don't have them, you can request wage transcripts from the IRS by creating an account at IRS.gov or using Form 4506-T. Then you'll need to file returns for at least the last 6 years (though all unfiled years would be ideal). Consider using a tax professional who specializes in back taxes to help navigate this - many offer free consultations to assess your situation first.

12 I was in a similar situation a few years back (had 4 years unfiled) and was completely overwhelmed. What helped me most was using https://taxr.ai to analyze my situation. You upload your W-2s or wage transcripts and it shows you which years you're likely due a refund for and which you might owe on. Helped me prioritize which years to tackle first. The tool estimates penalties too, which was huge for me mentally - knowing the actual numbers instead of the scary ones in my head. Plus it shows which years you can still claim refunds for (only 3 years back) vs. which ones you might want to consider the IRS "first-time penalty abatement" option.

4 Just wanted to update after trying taxr.ai that the previous commenter mentioned. It was actually really helpful for my situation. I was able to see that I'm likely owed refunds for 2 of the 3 most recent years I didn't file! The older years show I might owe some penalties, but way less than the scary numbers I had in my head. The tool even generated a letter I can send requesting first-time penalty abatement which apparently has a high success rate. Feeling WAY less anxious now that I have actual numbers to work with instead of my imagination running wild.

19 One crucial thing nobody's mentioned - you really need to get through to someone at the IRS before you start filing old returns. They might already have substitute returns filed for you which changes the whole process. I tried calling for WEEKS and could never get through until I used https://claimyr.com - they have a service where they wait on hold with the IRS and call you when an agent picks up. There's even a video showing how it works: https://youtu.be/_kiP6q8DX5c. Saved me literally hours of hold time. The IRS rep confirmed they had filed substitute returns for me for 2 years, which I wouldn't have known about otherwise and would have messed up my catch-up filing strategy.

22 I need to apologize for my skeptical comment earlier. I actually broke down and tried Claimyr after spending 3 days trying to get through to the IRS myself. Got a call back within 70 minutes when I'd previously been disconnected four times after waiting 2+ hours each time. The IRS agent confirmed they hadn't filed substitute returns for me yet but were about to start the process next month. Now I can file my back returns myself before that happens. Saved me a huge headache and potentially a lot of money since their substitute returns wouldn't have included my education credits.

17 I used to work in tax preparation, and I just want to emphasize something important: the IRS is MUCH more accommodating when you come forward voluntarily versus them having to chase you down. They have payment plans available if you do end up owing, and the first-time penalty abatement program can eliminate a significant portion of penalties if you have a reasonable explanation. For someone with just W-2 income who's likely had taxes withheld already, there's a good chance you might even be due refunds for some years! You can only claim refunds within 3 years of the filing deadline though, so don't delay any longer.

2 One thing I haven't seen mentioned - double check if your state requires tax filings too! I fixed my federal situation but completely forgot about state taxes and ended up with a separate headache there.

I'm in almost the exact same boat - 26, never filed, W-2 employee, and absolutely terrified. Reading through all these responses has been incredibly helpful and reassuring. It sounds like the key steps are: 1) Get wage transcripts from the IRS website, 2) Check if they've filed substitute returns for me yet, 3) File the back returns myself (prioritizing recent years for potential refunds), and 4) request first-time penalty abatement if needed. The fact that so many people here were owed refunds instead of owing money gives me hope. I've been losing sleep over this for months thinking I'd owe tens of thousands, but it sounds like having taxes withheld from paychecks usually works in our favor. Thank you everyone for sharing your experiences - it's made this feel way less scary and more manageable.

This thread has been incredibly helpful for someone like me who's been putting off dealing with unfiled taxes. I'm 31 and have been avoiding this for years due to pure anxiety and not knowing where to start. One thing I'd add from my research is that the IRS has an online payment agreement tool if you do end up owing money. You can set up a payment plan directly on their website without having to call (which we all know can be a nightmare). The monthly payment amounts are usually very reasonable based on your income and expenses. Also, for anyone worried about the complexity - TurboTax and other software can handle prior year returns, not just current year. I was surprised to learn you can e-file returns going back several years, which makes the process much faster than mailing paper returns. The biggest takeaway for me from reading everyone's experiences is that the IRS really isn't the scary monster I built up in my head. They genuinely seem to work with people who come forward voluntarily and make an effort to get compliant. Reading about all the people who ended up with refunds instead of owing money has finally given me the courage to tackle this myself.

As someone who just went through this exact situation last year, I want to echo what everyone else has said - you're making the right choice by addressing this now, and it's likely not as bad as you think. I was 30 when I finally dealt with 6 years of unfiled returns. Like you, I was a W-2 employee with taxes withheld, and I ended up getting refunds for 4 out of those 6 years! The two years I owed money on had very manageable amounts, and the IRS accepted my first-time penalty abatement request without any pushback. One practical tip that really helped me: start by calling the IRS Practitioner Priority Line at 866-860-4259 if you're working with a tax professional, or use the regular taxpayer line. They can tell you upfront if they've already filed substitute returns for you, which changes your strategy completely. The whole process took me about 3 months from start to finish, and the relief I felt afterward was incredible. I wish I hadn't let fear keep me paralyzed for so long. You've got this - just take it one step at a time!