What happens if you miss the tax filing deadline?

Choosing to file your taxes after the deadline can lead to significant financial consequences. If you miss the tax filing deadline, you may incur penalties and interest on any unpaid taxes. The IRS typically applies a failure-to-file penalty if a taxpayer does not submit their return on time, which can be a percentage of the unpaid tax amount each month the return is late. Additionally, interest accrues on the unpaid taxes, compounding over time, which can increase your overall tax liability.

It's important to understand that these penalties and interest are meant to encourage timely filing and payment of taxes. The IRS does provide some options for taxpayers who cannot meet their obligations, such as payment plans or hardship provisions, but these do not eliminate the penalties for failing to file by the due date.

In contrast, options referring to penalty waivers, credits towards future tax payments, or automatic filings of previous returns do not accurately reflect the realities of missing the filing deadline. Taxpayers must proactively address any missed deadlines to avoid these adverse financial repercussions.