Interest generally accrues on any unpaid tax from the due date of the return to the date of full payment. The interest rate is determined quarterly and is the federal short-term rate plus 3 percent. The penalty for not filing taxes is usually 5% of the tax due for each month your return is due. If you don't file a tax return year after year or you deliberately refuse to pay the taxes you owe, you could face criminal charges.
Otherwise, everything you owe after the tax deadline could be subject to that penalty and interest on late payment. Regardless of whether you don't get your refund, you should consider filing a return from the previous year, even if you won't get a tax refund. If you pay at least 90% of the balance due when you receive your federal extension, you won't be penalized for late payment. If you are only late in filing your return, meaning that you have paid your due taxes, the maximum late filing penalty of 5% will apply to you.
People who file late can be eligible for tax relief in the form of a reduction in the penalty if they meet certain conditions. You may have to pay the default penalty of 0.5% of your outstanding balance for each month (or part of a month) that your taxes don't pay after the deadline. Here's a look at the details, as well as the penalties and consequences of the IRS for not paying or underpaying your taxes. If you don't pay your taxes or if you pay less than you owe, the IRS will impose a penalty of 0.5% of the amount you owe per month.
They also have deadlines for filing tax returns to request tax refunds and what to do if you can't pay the taxes you owe. If you owe taxes, file your tax return and file your tax payment as soon as possible to reduce late filing and payment fees and penalties. The amount you owe for this penalty will be reduced by the amount you owe for non-payment, if you owe both in any month. If you owe taxes and don't file your federal income tax return before the tax deadline, there may be consequences in the form of penalties and interest from the IRS.
The garnishment applies to each pay period until you pay in full or establish another agreement with the IRS. If you are due a refund or are not required to file income taxes, there is no penalty for not filing taxes, according to the IRS. Once the e-filing deadline has passed, it's too late to file taxes online, but it's not too late to file taxes on paper forms and send them by mail.
