If you don't file your taxes on time, you may face penalties and interest charges from the government. These penalties can be costly and can accumulate quickly, especially if you owe a significant amount in taxes.
The penalty for not filing your taxes on time is typically 5% of the unpaid taxes per month that the return is late, up to a maximum of 25% of the unpaid balance. This penalty will continue to accrue until the tax return is filed or until it reaches the maximum penalty amount.
If you also owe taxes and do not pay them on time, you may face additional penalties and interest charges on the unpaid balance. The penalty for not paying taxes on time is typically 0.5% of the unpaid taxes per month, up to a maximum of 25% of the unpaid balance.
However, if you have a valid reason for not filing your taxes on time, such as a natural disaster or a medical emergency, you may be able to request an extension or waiver of the penalties. It is important to contact the IRS or a licensed tax professional as soon as possible if you are unable to file your taxes on time.
In summary, if you do not file your taxes on time, you should expect to face penalties and interest charges from the government. It is important to timely file and pay your taxes to avoid additional financial consequences.
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