Failing to file your tax return on time can lead to more than just stress. The IRS imposes penalties and interest that can grow quickly if left unresolved.
Failure-to-File Penalty
If you do not file your return by the deadline, the IRS may charge a penalty based on the amount of tax owed. This penalty increases the longer your return remains unfiled.
Failure-to-Pay Penalty
Even if you file on time but do not pay your balance, the IRS can still assess penalties and interest.
Interest Adds Up Quickly
Interest accrues daily on unpaid taxes, making delays more costly the longer they go unresolved.
Filing an Extension
An extension gives you more time to file, not more time to pay. You should still estimate and pay what you owe to reduce penalties.
Addressing missed filings early can prevent serious financial consequences and IRS enforcement actions.