What are the penalties for not filing taxes?

The penalties for not filing taxes in California are quite severe. There are two main types of penalties for failing to file taxes: failure-to-file and failure-to-pay. The failure-to-file penalty is 5% of the unpaid taxes for each month the return is late, up to a maximum of 25% of the unpaid taxes. The penalty will begin to accrue the day after the tax return due date and can be avoided if you file on time. The failure-to-pay penalty is 0.5% of the unpaid taxes for each month the balance is not paid. This penalty starts the day after the tax due date and continues to accrue until the taxes are paid in full. It cannot be greater than 25% of the unpaid taxes. In addition, if your tax return is more than 60 days late, the minimum penalty will be either $210 or 100% of the unpaid taxes. Failing to file taxes can also result in additional penalties such as interest on the overdue taxes, criminal prosecution, tax liens, wage garnishment, and revocation or suspension of professional or business licenses. Therefore, it is important to remember to pay taxes on time in order to avoid any of these penalties. If a tax return is not filed on time, it is best to take advantage of extensions offered by the Internal Revenue Service to ensure that taxes are paid in a timely manner.

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