Many people try to put off preparing their tax returns until the last minute. However, what if you wait a little too long and the deadline passes by? Depending on the status of your taxes, you might face thousands of dollars in additional fees or other penalties. Therefore, those with unfiled returns should consider talking to an experienced tax law attorney who can further explain the possible consequences and offer advice for what next steps to take.

What Happens if You Miss the Tax Filing Deadline?

1. No Penalties if You’re Expecting a Refund

If you’re expecting a refund, the tax law doesn’t include any penalties for submitting late. You have a window of up to three years to file and collect a check, after which time, the government will keep the money.

2. You’ll Be Charged a Failure-to-File Penalty

If you owe taxes and file late, you could face fees and penalties that could add hundreds of dollars to your bill. After 60 days, the IRS will add a failure-to-file fee of $205 or 100% of the unpaid taxes, whichever is less.

3. You’ll Have to Pay Failure-to-Pay Penalties

Along with the late-filing penalty, you’ll also have to pay an additional 0.5% of the total owed every month for failing to pay. US tax law allows the IRS to charge up to 25% of the outstanding bill, so it’s in your best interests to file as quickly as possible.

For more than a decade, Corey C Davis CPA Attorney at Law has provided a comprehensive range of accounting services to individuals throughout the Kerrville, TX, area. If you’re late filing returns or have other concerns relating to tax law, his team can guide you through the system and minimize the consequences. Visit their website for an overview of their services or call (830) 257-8800 to discuss your problem and schedule an appointment.