By greenberg law group, p.a.
To answer the question, “What happens if I file my taxes late?” let’s take a look at the different things that can occur.
Filing your taxes on time is crucial for many reasons, but of course, we all make mistakes, and missing deadlines can happen to anyone.
The standard tax filing deadline as Tax typically falls on April 15th each year. However, if April 15th happens to be a weekend or a legal holiday, the filing deadline is extended to the next business day.
The failure-to-file penalty will be imposed for those who miss the deadline for filing federal income taxes. This penalty is calculated by taking a percentage of the due taxes for each month (or part of a month) that your tax return is overdue.
The failure-to-pay penalty is imposed on taxpayers who fail to pay their federal income taxes on the deadline. The fine is based on how long your overdue payment remains unpaid. However, unlike the failure-to-file penalty, this penalty is set at 0.5% of the due taxes.
The interest on your unpaid taxes is determined based on the current federal interest rate. The formula for calculating daily interest is Principal Amount × Daily Interest Rate. Interest accrues daily, and it’s compounded. This means that the interest is calculated on the principal (the amount of unpaid tax) and the accumulated interest from previous days.
there are additional consequences that can affect taxpayers:
1. Delays in receiving tax refunds
2. Inaccurate financial snapshot
3. Difficulty planning for future expenses and investments.