What happens when you file your tax returns LATE!

Running a business is time-consuming but you can’t forget about your tax obligations, if you do there can be major consequences.


The IRS closes the electronic filing portal when tax season ends, meaning that you’ll have to file on paper. Paper filing isn’t just annoying, it increases your odds of being audited – especially when done out of season.



If you file late you’ll be on the hook for the failure to file penalty which is 5% of your tax balance, maxing out at 25% of the balance plus interest. If you also fail to pay on time the IRS will charge you the failure to pay penalty as well, which is 0.5% of the balance per month, also up to 25% of the balance.



Under certain circumstances, the IRS will file a substitute return on your behalf. This substitute return will include only 1099 income without any deductions. For example, If you make $100k but spent $90k in deductions, IRS will assess your tax balance without the deductions.

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DISCLAIMER:
Tax Tips discussed here were prepared for the purpose of this video. To apply these strategies, please consult with your CPA or professional tax preparer.

[cruisingwithcaptaincliff]

I used a CPA to help me, and he requested under IRS's first-time abatement relief. I have been on time paying for many years. However, after I retired from the US Army with over 20-years of service, life took a turn. The abatement was denied, and I paid total of approximately $108, 000 for tax year 2021 that included late penalties and accrued interests. Luckily I was able to login to my IRS online account where I saw balance plus accruing interest. I paid in FULL. I hope this is the last of it so I can enjoy my retirement from the U.S. Army. Wished I saw this video. Thank you for your informational video.

[RoyalCaliQue]

I love this video ! straight to the point

[joesielskisr]

I went a few weeks ago and since I moved my General motors 1099 I didn't get so I go in the 4_17-24 last year she told me that I might not have to file, will they charge me for being late, I am retired and 74 years old 😊

[blackericdenice]

Thank you for your video. I can afford to pay an extra $45.

[psrlovely]

hi po. nakapagfile po ako on time pero hindi ko pa po mabayaran. pag po nagbayad na ako, kasabay na po babayaran yung penalty? or kahit yung mismong tax due lang muna po? tia

[dhopjr]

What happens when you file your tax returns LATE! PAIN