The IRS filing season statistics for 2022 highlight a significant trend: out of 163 million potential filers, 11 million individuals did not file their tax returns. This marked an increase from the 8 million non-filers reported in 2021. (The 2021 tax year saw higher filing rates due to pandemic stimulus incentives, making it more appealing to submit a 1040.) While 11 million non-filers may seem like a large number, they account for less than 7% of the required filers in the U.S.

If you’re among the millions of non-filers, here’s a rundown of potential reasons that might motivate you to take action—and why FEDTAX is here to help:

Substitute for Returns (SFRs)

The IRS may file a tax return on your behalf without factoring in deductions or credits. This often results in a much higher tax liability than if you had filed yourself.

Passport Revocation

If you owe over $50,000 in tax liabilities and have unfiled returns, your passport could be revoked, or you may lose the ability to renew it.

Department of Justice (DOJ) Criminal Investigations

While rare, not filing your taxes can be deemed potentially criminal and lead to DOJ involvement.

FAFSA Applications

If your child is applying for student loans, a completed tax return will likely be required to complete the process.

Buying a Home

Lenders often request tax returns from the past two to six years to evaluate your eligibility for a mortgage.

Emotional and Practical Burdens

Guilt, fear, or worry about being out of compliance with tax laws—along with the potential consequences listed above—can weigh heavily on you.

At FEDTAX, we understand these challenges and specialize in helping non-filers navigate the system. Whether it’s avoiding unnecessary penalties or getting back on track, we’re here to make the process manageable.