What happens when you don't file your taxes? You could accrue costly penalties that add up over time. Certified accountants explain how to find a payment solution that works for you. Learn more: https://trustwayaccounting.com/post/tax-day-terror-happens-dont-file-taxes
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Failure-to-File Tax Penalty, Explained: Accountant
Insights on Solutions
Whether because of financial concerns or simple
confusion about the process, postponing your tax filing
can seem tempting—but the consequences can be
severe and long-lasting.
Failure to file is common: The IRS
reported over $77 billion in
unpaid taxes in 2021 alone. But
not submitting a return can end
up costing a lot more than
simply not paying.
The Failure-to-File Penalty charges 5% of unpaid taxes for each month of delay, which can
accumulate to a maximum of 25% of your unpaid taxes.
Failure to file for several years in a row can also
trigger a tax evasion investigation. Tax evasion is a
felony crime carrying much more significant
penalties, including prison.
Filing without paying accrues 0.5% of interest for each
month of late payment, which also caps at 25% but
takes longer to reach that maximum—a much cheaper
option than not filing.
Trustway Accounting offers a full spectrum of tax planning services to help individuals and businesses
stay compliant, reduce tax burdens, and build secure financial futures.
https://trustwayaccounting.com/post/tax-day-terror-happens-dont-file-taxes
Learn more at https://trustwayaccounting.com/post/tax-day-terror-
happens-dont-file-taxes
Insights on Solutions
Whether because of financial concerns or simple
confusion about the process, postponing your tax filing
can seem tempting—but the consequences can be
severe and long-lasting.
Failure to file is common: The IRS
reported over $77 billion in
unpaid taxes in 2021 alone. But
not submitting a return can end
up costing a lot more than
simply not paying.
The Failure-to-File Penalty charges 5% of unpaid taxes for each month of delay, which can
accumulate to a maximum of 25% of your unpaid taxes.
Failure to file for several years in a row can also
trigger a tax evasion investigation. Tax evasion is a
felony crime carrying much more significant
penalties, including prison.
Filing without paying accrues 0.5% of interest for each
month of late payment, which also caps at 25% but
takes longer to reach that maximum—a much cheaper
option than not filing.
Trustway Accounting offers a full spectrum of tax planning services to help individuals and businesses
stay compliant, reduce tax burdens, and build secure financial futures.
https://trustwayaccounting.com/post/tax-day-terror-happens-dont-file-taxes
Learn more at https://trustwayaccounting.com/post/tax-day-terror-
happens-dont-file-taxes