Consider the Consequences of Late Filing Your Tax Return
If you’ve been procrastinating on tax filing or have skipped past years, it’s time to think about the consequences. From penalties and interest to potential IRS enforcement actions, the costs of delaying can add up. And if you’re due a refund for a prior year, you might risk losing it entirely.
📌 Penalties
If you haven’t filed your return and you owe taxes, stop procrastinating because you could face both a late payment and a late filing penalty. File your return as soon as possible and pay as much as you can to minimize penalties and interest.
📌 Failure-to-Pay
The failure-to-pay penalty is 0.5% of your unpaid taxes for each month (or part of a month) that your payment is late, up to a maximum of 25%. If you delay too long and the IRS issues a levy notice, and you don’t pay within 10 days, the penalty increases to a full 1% per month. It’s a steep price to pay for putting off your tax filing.
⌛Not Filing on Time
There is also a penalty for not filing on time. The failure-to-file penalty is 5% of the tax owed for each month or part of a month that your return is late, up to a maximum of 25%. If your return is over 60 days late, the penalty is $435 (for tax returns required to be filed in 2020, 2021, and 2022) or 100% of the tax required to be shown on the return, whichever is less.
💡 Don't Wait... Even if a Refund is Due
No penalty exists for filing late if you’re due a refund. However, waiting too long can cost you your refund and any tax credits you qualify for. To receive a refund, you must file within three years of the original due date.
✅ Enforcement by the IRS
Taxpayers who continue to not file a required return and fail to respond to IRS requests to do so may be subject to a variety of enforcement actions, all of which can be unpleasant.
Need Help with Compliance?
It’s never too late to get back on track. Let us help you navigate the complexities of late tax filing and bring your federal—and state, if applicable—income tax returns into compliance.
Don’t let procrastination turn into a costly mistake. Reach out to us now, and let’s get your tax filings back on track before those penalties add up. Your peace of mind is just a phone call away.