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\nAlthough 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
\n- 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