Here's What Happens if You Don't File Your Taxes on Time


As tax season comes to a close, many Americans have yet to file their income taxes, according to IRS data. However, with the tax deadline approaching on Tuesday, those who still haven't may be wondering about the consequences of not filing in time. While not everyone is obligated to file a tax return, those who owe may face penalties from the IRS. On the other hand, those who are set to receive a refund will face no penalty for failing to file. Read on to learn more about the potential consequences of skipping out on tax filing this year.

Failing to file your taxes can have several negative consequences. Firstly, you may miss out on your tax refund if you don't file within three years, as federal refunds have a statute of limitations. Secondly, you may lose out on valuable tax benefits, such as the earned income tax credit or child tax credit. Even if you're not required to file due to low income, you may be eligible for refundable credits. Finally, the IRS may impose penalties and interest on unpaid taxes. Failure to file and failure to pay penalties can accumulate, with the maximum penalty reaching 25% of your owed taxes. In addition, the IRS charges interest compounding daily, which can also add up over time. It's important to file your taxes on time to avoid these potential negative consequences.

It's important to file and pay your taxes on time to avoid potential consequences. Failure to do so could result in an IRS levy or tax lien. The Federal Payment Levy Program allows the IRS to collect unpaid taxes from various federal payments, such as Social Security benefits and wages. Additionally, a tax lien may be placed against your property, both current and future, which could affect your credit score and notify creditors of the IRS's legal claim. In extreme cases, taxpayers who commit tax fraud or evasion may face criminal charges and up to five years in prison. However, it's important to note that the likelihood of criminal charges is low, and the IRS only conducted a small number of criminal investigations in the past year.

As a helpful assistant, I can provide guidance on how to file for an extension on your taxes in case you missed the deadline. You can submit Form 4868 through the IRS Free File system to extend your deadline to October 16th. It is necessary to estimate your tax liability and pay any amount due. Additionally, if you are a resident of one of the seven states severely impacted by natural disasters in 2022, such as New York, Arkansas, Tennessee, Mississippi, California, Georgia, and Alabama, the IRS has already extended your tax deadlines. However, the deadlines may vary from state to state, so it's crucial to understand your specific state's extension dates. H&R Block's recent study reported that 69% of Americans are worried about their financial stability. In this situation, it's crucial to submit the tax forms or apply for an extension to minimize penalties. Even if you owe money, submitting the forms or an extension can halt the penalties from accumulating.

Post a Comment

Previous Post Next Post