What Happens if You File Taxes Late? Here is the Good News and Bad

Just do it already. Reset your view on taxes if you think not filing a return is the best course of action for you. Why do you ask? If you file your taxes late, what will happen?

What Happens if You File Taxes Late? Here is the Good News and Bad

A tax return is an annual federal financial report that assembles and reports tax payments, tax deductions, credits, and income received for money earned during the prior calendar year  (or tax year).

What is a Tax Return?

Do I Need to File a Return?

Despite the scare tactics employed above (what can I say, I’m a CPA who knows you don’t want to get on Uncle Sam’s bad side), you might not even need to file a tax return to begin with.

We know when you need to file (mostly) based on the above discussion. Now, if you still aren’t convinced filing a return is the right move, I’ll really need to lean in and hammer home the fear because not filing a return will get costly and fast.

What Happens If You Don’t File Taxes?

What Should I Do If I Can’t Pay My Tax Bill?

People who are in a position to pay their taxes should make payments as they go. That means that you are showing people that you are acting in good faith to pay what you owe, and this will also lower the amount of money you would have to pay (that’s how paying bills works!).

If you can pay the full amount now, you can use an electronic funds transfer or even pay with a credit or debit card. Granted, don’t forget that you will also owe interest charges if you carry a balance on your credit card.

Pay What You Can

If you need more time to repay your unpaid tax balance, you can file a request for an extension and then apply for an extension. There are different costs tied to establishing an installment plan.

Sign up for a Payment Plan

A formula exists that considers your particular circumstances (such as debt, the time frame needed to repay, etc.) and determines the cost.

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