What Happens if You File Taxes Late? 

The Good News and the Bad

The IRS receives between 165 and 170 million tax returns every year. More than 350 Billion dollars is refunded to taxpayers who overpay each year.

But for the approximately 40 million people who under paid, filing taxes late can have cost them even more than they bargained for.

Not filing a return gets costly, very quickly.

Wouldn't you rather pay $50 – $100 to file your taxes with softwarethan face the long arm of Uncle Sam's fee schedule? Or, even better, file easier returns for free with the IRS Free File Alliance if you earn below certain annual thresholds.

Penalties and Interest

Penalties are the worst. They're not any better coming from the federal government. For failing to file a return when you are technically required to do so, they slap you with a late-filing penalty worth 5% of the tax owed per month in most circumstances.

Because there's a 25% maximum the IRS will assess, you'll pay this each month for five months you fail to file.

The IRS will file a substitute return and won't fully capture your tax situation because you didn't give them the details to form one.

The IRS Files a Substitute Return for You

A substitute return won't include all the details you'd like shown about your tax picture, costing you money for not claiming applicable deductions, credits, or other tax items which benefit your bottom line.

Swipe up to learn more!