What happens if you don’t file your taxes?

On Behalf of | Jul 6, 2017 | Back Taxes or Tax Debt

Citizens of Danbury, Connecticut (Fairfield County), usually tend to pay their taxes when they are due. However, if they pay late or insufficiently, they may be faced with tax collection issues.

Are tax collection issues worse when the April 15 deadline is missed?

Issues are going to be notable if you don’t file by the annual April 15 deadline and didn’t file for an extension. In that case, you may have to pay a fine that will range between 5 percent and 25 percent of the taxes that you owe. If you are 60 days late in filing, you may owe a fee of $135 or 100 percent of the taxes that you owe. In short, not filing or filing late will mean that the total amount that you owe will increase as fines are added to the original amount of taxes due.

What about if you are owed a refund?

Of course, you don’t get a fine if you are due a refund; however, you don’t get the refund without filing either. In fact, if you fail to file for a refund within three years after it is due to you, you won’t get it at all. Instead, that money will stay in the government’s pocket, there to be spent on things that won’t benefit you.

What if I can’t file by April 15?

If you feel that you can’t file by the annual April 15 deadline one year, file for an extension. That will get you an additional six months, until October 15 of that same year, to file your return.

Will I still owe late fees?

The extension keeps you from getting the failure-to-file penalty. However, the taxes that you owe may still be considered late and you may still be subject to late fees. Therefore, although extensions are convenient, it is still best to pay all of your taxes in full by April 15 if you at all can.

Of course, if you find yourself facing taxation challenges, you’ll want to consult with an experienced attorney. That attorney will help you to navigate rules and deal with the taxes that you have to pay.

Source: Yahoo Finance, “Here’s what really happens if you don’t file your taxes,” Mandi Woodruff, accessed July 06, 2017