Penalties for filing a late return can amount to a rate of 5% of the amount of taxes due for each month that you are late. If you missed the tax deadline but are due for a refund, there is no penalty. The government will be happy to keep your money, interest-free, for a little longer. In fact, you have up to three years from the filing deadline to complete a return and get that refund.
If you miss the tax filing deadline and haven't filed an extension, you'll start accruing interest and penalties. There are penalties for both not submitting the application and for not paying. If you haven't paid all of your tax liability by the deadline, you'll be subject to both. The IRS will begin its collection process.
If your taxes remain unpaid long enough, the government can impose a tax on your property or seize your assets. For every month you are late in filing your return, you will be fined five percent of the total amount due. The wording of “one month” doesn't mean that the first 30 days after the deadline are some kind of gift during which you can send your return and any payments due without penalty. Rather, being even one day late places you in the category of “one month late”.
If you haven't filed the required tax returns, find out how long ago you may have to file them and get the nine tips you need to know about filing late tax returns. The IRS can impose a penalty of 5% of the taxes due per month for each month that taxes are due after the April filing deadline if an extension has not been granted. If you didn't file your tax return or pay your tax liability, the no-file and no-pay fees will apply. If you file an extension, make sure that you have paid enough taxes so that you are not due taxes or that you are owed a refund when you are about to file your return.
A penalty for not filing the return is 5% of your unpaid taxes for each part of the month in which your tax return remains outstanding.