The federal tax deadline of April 15 has come and gone, and if you didn’t manage to file your taxes by this date, it’s crucial to act quickly. Tax experts advise that you should file your return and settle any taxes owed as soon as possible to avoid further penalties.
For those who haven’t filed and still owe taxes for the year 2023, the consequences include accruing penalties and interest. According to the IRS, these penalties will continue to accumulate until you file your tax return and pay the due amount.
Specifically, the IRS imposes a late filing penalty, which amounts to 5% of the unpaid taxes for each month or part of a month that a return is late. This penalty can grow until it reaches a maximum of 25% of your unpaid taxes. Additionally, there is a failure-to-pay penalty of 0.5% per month or part of a month that the tax remains unpaid, also capping at 25%. Interest is also charged on the unpaid amount and is calculated based on the IRS’s current interest rates.
The risks of delaying your tax filing include escalating penalties and interest from both the IRS and possibly state tax authorities. The longer the delay, the more severe the financial penalties can become, making it imperative to file and pay any outstanding taxes without further delay.
👉 If you need assistance with filing your taxes, please don’t hesitate to contact us. Our team is here to help you navigate the process and avoid additional penalties and interest.
