What are the penalties for filing taxes late?

In Maryland, there are several penalties for filing taxes late. Not filing your taxes by the due date will result in a 5% failure-to-file penalty per month. The maximum penalty is 25% of your unpaid taxes. Additionally, the IRS may charge you an additional failure-to-pay penalty of 0.5% per month, up to 25% of the unpaid taxes. This penalty is calculated on a monthly basis until the taxes are paid or until the maximum penalty has been reached. There are also interest charges, which the IRS charges on any unpaid taxes. The interest rate is determined quarterly and is the federal short-term rate plus 3%. Not filing your taxes on time also means you won’t get your taxes refunds, if you had any. Additionally, if you owe taxes and don’t file on time, the IRS could also start taking tax refunds or other payments from your bank account or other assets. And finally, you could even face criminal charges for tax fraud or evasion if you don’t file on time and owe a large amount of money. Overall, it is best to file your taxes on time and pay any taxes you owe to avoid facing any of these penalties. It is important to research different tax filing deadlines and ensure you’re filing your taxes on time.

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What are the penalties for filing taxes late?

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