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Law & Legal
  1. How to Qualify for a Medicaid Waiver
  2. Six Reasons Someone May Be Placed Under a Guardianship
  3. What Can Be Included in a Will?
  4. How Much Should You Put as a Down Payment on a House?
  5. 3 Assets That Can Fund a Trust
  6. Why You Should Have a Life Insurance Policy
  7. Is Real Estate a Good Financial Investment?
  8. S-Corp vs. C-Corp
  9. 5 Reasons Someone Might Disinherit a Child
  10. Benefits of a Testamentary Trust
  11. Steps on How to Sign Up for Life Insurance
  12. What is the Estate Administration Process?
  13. What Types of Government Benefits are Available for the Elderly?
  14. What is the Job of an Executor?
  15. What is a Simple Estate Plan?
  16. Why You Should Have a Will
  17. 3 Things You Need to Prepare Your Taxes
  18. Tips for Planning an Estate
  19. What is Electronic Notarization?
  20. Are There Requirements to Qualify for Medicaid Home Care?
  21. 3 Benefits of Tax Planning
  22. 3 Things to Know About Retirement Planning
  23. How Does Mental Illness Impact Your Estate Planning Process?
  24. What is a Lawsuit for Wrongful Death?
  25. What is The Tax Code?
  26. Guide to Become a Tax Advisor
  27. Does My Parents' Divorcing Impact My Inheritance?
  28. Guide to Understand When You Should and Shouldn't Buy a Home
  29. 3 Things a CPA Can Help With
  30. Tips to Maximize Your Tax Refund
  31. 3 Reasons You Should Have a Tax Accountant on Retainer
  32. Do Self-Employed Individuals Get Taxed Differently?
  33. What are Unclaimed Funds?
  34. 4 Things to Know About Surrogate's Court
  35. 3 Reasons Having Advance Directives is Important
  36. What are Estate Taxes?
  37. What is The Estate-Tax Exemption?
  38. Who Has to File Taxes?
  39. 3 Reasons You Should Have a Trust Protector
  40. Understanding Spousal Impoverishment
  41. Who Files Taxes For Businesses?
  42. Should I File My Taxes Using Turbo Tax?
  43. 3 Ways to Protect Against Financial Exploitation
  44. Who Qualifies for a Special Needs Trust?
  45. Guide on How to Write Off Business Expenses When Doing Your Taxes
  46. 3 Things Every Small Business Should Know
  47. Why Updating Your Will is Important
  48. What is the Probate Journey?
  49. What Happens if I Don't File My Taxes?
  50. Tax Accountant vs CPA
What Happens if I Don't File My Taxes? {{ currentPage ? currentPage.title : "" }}

They say there are only two things you can't escape in life: Death and taxes! But have you ever wondered what would happen if you don't file your taxes? These days, learning how to file taxes is easier than ever. There are many professionals available to make the process easy, and the IRS gives you ample time to get all your paperwork in. Navigate tax season with ease! Click here to visit this website for step-by-step guidance on how to file taxes and ensure maximum returns.

So, what happens if you ignore those deadlines and don't fulfill your tax obligations with the IRS?

Failure to File Penalties

You will receive a penalty if you don't file your taxes by Tax Day (April 15th). There are two types of penalties involved.

The first is the Failure to file penalty, and the IRS charges this fee when you don't file your taxes by the due date. The second is the Failure to pay penalty. Because you didn't file your taxes, you likely didn't pay the taxes owed either. As the name implies, it's an extra charge that applies when you don't pay the total amount of taxes owed.

How much is the Failure to file penalty?

It's 5 percent of the unpaid taxes for each month (or part of the month) that your tax return is late. The IRS will charge both Failure to File and Failure to pay penalties. However, the Failure to file penalty is reduced by the Failure to pay penalty, resulting in a 5 percent penalty each month you're late.

The Failure to file penalty does max out. It won't exceed 25 percent of your unpaid taxes. Therefore, the penalty maxes out just five months after the due date. But if you owe taxes, penalties will still accrue.

The Failure to pay penalty goes beyond the five-month window, amounting to 0.5 percent of your unpaid taxes. It also maxes out at 25 percent, but you'll continue getting penalties for much longer until you fulfill your tax duties.

There are ways to manage payment. Once you learn how to file taxes with a professional, you can request payment plans to reduce penalties and get back on track.

Author Resource:-

Mark writes often about tax and estate planning. His articles may include topics like tax planning, estate planning, business accounting or any other tax service to help the people in needs. You can find his thoughts at tax advisor blog.

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