{"id":1058,"date":"2022-03-29T15:27:45","date_gmt":"2022-03-29T15:27:45","guid":{"rendered":"https:\/\/taxreliefprofessional.com\/?p=1058"},"modified":"2023-09-25T20:34:05","modified_gmt":"2023-09-25T20:34:05","slug":"what-would-happen-if-you-didnt-file-your-taxes","status":"publish","type":"post","link":"https:\/\/taxreliefprofessional.com\/filing-taxes\/what-would-happen-if-you-didnt-file-your-taxes","title":{"rendered":"What Would Happen if You Didn\u2019t File Your Taxes?"},"content":{"rendered":"\n

Are you running late on your taxes? Survey results reveal that one-third of Americans<\/a> leave filing their taxes to the last minute.<\/p>\n\n\n\n

If you’re falling behind on your tax filing, you might be wondering, what would happen if you don’t file your taxes? Or maybe you’ve failed to file your taxes already, and are worrying about the repercussions.<\/p>\n\n\n\n

Taxes can be a big source of anxiety<\/a> for many people, even those who don’t owe the IRS anything. Ironically, this anxiety is often what triggers procrastination around filing. Once someone has missed a filing date, dread of what this might cause can hold them back even further from filing taxes.<\/p>\n\n\n\n

Although there are repercussions to failing to file your taxes, rest assured that the IRS won’t lock you up for filing a few days late!<\/p>\n\n\n\n

If you’re paralyzed at the thought of what failure to file taxes can cause\u2014take a deep breath and keep reading.<\/p>\n\n\n\n

The Penalty for Failing to File Your Taxes<\/h2>\n\n\n\n

If you file your taxes late, the IRS will impose a late filing fee. Currently, the late filing fee is 5% of the taxes you owe. This penalty is triggered each month after tax day. The IRS caps this penalty at 25% of the taxes you owe, however, there is an additional penalty you might pay.<\/p>\n\n\n\n

Taxpayers who still don’t file their taxes within 60 days of the April tax date are subject to a minimum penalty of $210 or 100% of their unpaid taxes, whichever is less.<\/p>\n\n\n\n

So, for instance, If you owed $195 in taxes, you’d have to pay $390 ($195 + $195). If you owed $360 in taxes, you would need to pay the $210 penalty, and your total tax bill would be $570.<\/p>\n\n\n\n

Failing to File When You Don\u2019t Owe Taxes<\/h3>\n\n\n\n

Want to hear some good news? If you don’t owe any taxes\u2014or are due a refund, then the above penalties don’t apply to you.<\/p>\n\n\n\n

If you owe $0 (or are due for a refund) you aren’t required to file, and there is no penalty for late filing if you do decide to file after the deadline.<\/p>\n\n\n\n

The only thing to be aware of is that if you’re owed a refund, you can’t claim it after more than three years. To get your refund you need to file a return within three years of the associated tax date.<\/p>\n\n\n\n

Also, the IRS won’t pay you any interest on the money they owe you. So it’s in your best interest to file as soon as possible if you are due for a refund.<\/p>\n\n\n\n

Special Exceptions<\/h3>\n\n\n\n

There are some specific situations where the IRS will waive late filing penalties. These include:<\/p>\n\n\n\n

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  • Disaster victim status<\/li>\n\n\n\n
  • Military service members in combat zones<\/li>\n<\/ul>\n\n\n\n

    If you live and work outside of the US and Puerto Rico, you will also have more time to file and pay your taxes.<\/p>\n\n\n

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    \n Evaluate your tax situation\n <\/h2>\n

    \n By evaluating your tax situation, you can identify areas where you may be able to reduce your tax burden and make informed decisions about your financial future.\n <\/p>\n \n \n\n\n

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