What Happens if You File Taxes Late? Here is the Good News and Bad
A tax return is an annual federal financial report that assembles and reports tax payments, tax deductions, credits, and income received for money earned during the prior calendar year (or tax year).
Penalties and Interest
First things first. You're going to get hit with penalties and interest. If you didn't expect that right off the bat, you don't know the federal government. These disincentives usually are enough to entice most to file a return without a fight.
The IRS Files a Substitute Return for You
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 Will Begin the Collections Process
Just file your return and pay what you owe. And even if you can't pay what you owe on tax day, you've got options!
You will still need to pay the tax you think you will owe, or you will face penalties and interest for not paying your balance.
What Should I Do If I Can’t Pay My Tax Bill?
People who are in a position to pay their taxes should make payments as they go. That means that you are showing people that you are acting in good faith to pay what you owe, and this will also lower the amount of money you would have to pay
Pay What You Can
If you can pay the full amount now, you can use an electronic funds transfer or even pay with a credit or debit card. Granted, don't forget that you will also owe interest charges if you carry a balance on your credit card.
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