What are the penalties for filing taxes late?

Filing our taxes late can have serious consequences in California. If your return is filed after April 15th, you may be subject to late filing fees. Depending on how late your filing is, you could be charged a penalty of up to 25% of the amount you owe, in addition to the amount owed. In addition, interest accrues on all unpaid taxes starting from the due date of the return. The interest rate is determined by the Internal Revenue Service (IRS) and fluctuates over time. Currently, the rate is 5%. If you still don’t file your taxes after being contacted by the IRS, they may file a return on your behalf and charge you additional fines. You will also be responsible for paying the balance due plus interest. Plus, you won’t be eligible for any tax refund if the IRS files a return for you. Finally, the IRS may take legal action against you. This could include placing a lien on your property, garnishing your wages, or even criminal prosecution. If you’re facing any issues with filing taxes on time, contact a qualified tax professional as soon as possible. In some cases, the IRS may grant extensions if special circumstances are provided.

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What are the penalties for filing taxes late?

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