This Is What Happens If You File Taxes Late

A tax is a mandatory contribution made to a government entity, such as a province, state, or country, by an individual or business.  

What Day Is The Last Day You Can File Your Taxes?

If your tax year ends on December 31st, the tax deadline for filing tax returns is usually April 15th every year. If the envelopes are appropriately sent, your declaration will be deemed to have been submitted on time. 

Understanding The Tax Season

The tax payment season is when all income taxes must be submitted by the deadline. The deadline is usually April 15th each year, as stated earlier.  

Filing Your Taxes Late

Filing your tax return late can be a costly task. Delayed submission may result in negligence penalties and a late payment penalty.  

What Happens If You File Taxes A Day Late?

It is important to remember that paying your tax returns late has consequences. Each month you are late for tax payment, you will have to pay an additional 5% penalty on the total amount you owe. 

The Penalty For Filing A Tax Return Late

If you submit your return one day late, you will be fined a late payment penalty. In addition, you also pay interest, which only increases your fees.  

The Maximum Penalty For Filing Taxes Late

An unfilled penalty, also known as an undeclared penalty or a late filing penalty, is usually 5% of the tax payable monthly or part of a late return month. According to the IRS, the maximum penalty is 25% if the income return is delayed by more than two months. 

Additional Penalties

Tax liabilities include things like a delinquency penalty. Unpaid/delinquency taxes are paid at 0.5% of the monthly unpaid taxes plus interest. 

Can You Go To Jail For Not Paying Taxes?

Well, according to the IRS, you will not go to jail for merely not submitting your taxes. But if you lie on your tax return form, you will definitely go to jail. 

Swipe up now to read the full post!