Not Filing Taxes On Time In Texas Has Consequences

It's quickly approaching - a date many of us would rather forget but can't afford to.  April 15th is the deadline for filing your taxes in the United States. It's a chore that can feel overwhelming, causing some to put it off until it's too late.

One point remains clear after reading an article from The Ascent: understanding the consequences of filing taxes late is essential. Things aren't quite as daunting when you know what to expect. So, in simple terms, let's tackle what happens if you miss the tax filing deadline.

LOOK: NOT FILING TAXES ON TIME IN TEXAS HAS CONSEQUENCES

Late Filing Penalties: If you don't file your taxes by April 15th, the IRS will charge you a penalty. This penalty is generally 5% of the unpaid taxes for each month or part of a month that your return is late, up to 25% of your unpaid taxes.

Late Payment Penalties: If you owe taxes and don't pay by the deadline, you'll be subject to an additional penalty. This penalty is 0.5% of the taxes owed for each month or part of a month you're late, up to 25%.

Interest Charges: In addition to penalties, interest starts adding up on any unpaid tax from the deadline until you pay the full amount. The interest rate can change every three months. The IRS doesn't mess around.

Loss of Refund: If you're due a refund, there's no penalty for filing late. However, there's a catch: if you wait too long (more than three years), you could lose your refund altogether.

Tax Liens and Levies: If you ignore the IRS reminders and don't make arrangements to pay your overdue taxes, the IRS can take severe actions, such as placing a lien on your property or garnishing your wages.

If you can't meet the April 15th deadline, you can request an extension to file your taxes (up until October 15th). However, this extension is only for filing, not for paying any taxes you owe, so if you expect to owe, try to estimate and pay that amount by April 15th to avoid penalties and interest.

We all know that filing taxes is not fun, but the consequences of not filing on time are even worse. Remember, the IRS is willing to work with those having trouble meeting the deadline. So reach out for help. After all, it's better to file late than not at all.