What Happens if You File Your Taxes Late?

The IRS may impose a variety of different penalties against you, depending on just how late you file your taxes.

If you aren’t able to file your taxes by the April 14th deadline, the IRS typically won’t take much action against you other than a small penalty and fee if you file within the same year.

• This penalty will be based on how much you owe.
• The penalty will include a failure to file penalty, a failure to pay penalty, and interest charges assessed on the amount of money you owe. 

Paying Very Late

The IRS becomes a lot more concerned- and the penalties a lot worse- if they determine you have owed taxes to be paid and have made no effort nor contact attempts to try and resolve the issue. At this point, the IRS is able to take legal action. 

• Failing to file your taxes can result in the IRS filing actions against you, such as a levy on any of the assets that you may own.
• This means that if you don’t pay the taxes you owe, they can assume the property theirs and sell it to recover the taxes you were to have paid.
• In most cases, however, you will be notified multiple times that actions will be taken prior to any being taken.
• You will receive intent letters, letting you know that the IRS has determined you to be delinquent and that it is planning to recover the owed taxes, along with any fines and penalties they’ve assessed, through legal recourse.

It is at this point that your best interest is to respond quickly and attempt to pay your tax debt down.