Can I file my taxes late?
You can file your taxes late, but it’s best to avoid it if you can. If you owe taxes, filing late can lead to additional penalty fees. The sooner you file a tax return, the better off you will be.
What happens if I file my taxes late?
Filing your taxes late may mean that you owe back taxes. If you owe back taxes, you can incur late-filing penalties (see below). Altogether, filing late can overcomplicate your tax situation, and it may mean that you’ll have to pay more than what you initially owed.
You will not incur penalties if you have already paid your taxes but have not filed your return.
What happens if you owe back taxes?
If you owe the government money in back taxes, you may face interest charges and penalty fees, starting with a failure-to-file penalty. Over time, these surcharges can amount to a considerable sum of debt.
You can avoid paying unnecessary penalties by filing your taxes on time every year. If you cannot pay the full amount you owe, you can also file an extension or tax deferment.