What are the penalties for not filing taxes?

Not filing taxes can result in serious consequences, especially in Washington. Penalties for not filing taxes begin with a failure to file penalty of 5% of the unpaid taxes for each month that the return is late up to 25% of the unpaid taxes. This penalty is in addition to the taxes that you owe and any interest that accrues on the amount that you owe. Additionally, failing to file a return can result in a late payment penalty of .5% of the unpaid taxes for each month that the payment is late up to 25% of the unpaid taxes. If you continue to file taxes late, the Internal Revenue Service (IRS) may file a Substitute for Return (SFR) for you. An SFR is a return that the IRS prepares using the limited information provided to them. Paying taxes due on an SFR can result in unfair tax results and the payment may not reflect any deductions or credits that you may be eligible for. Not filing taxes is a crime that can result in both civil and criminal penalties. Civil penalties can include fines up to $25,000 and the loss of some rights and privileges, such as the right to hold public office. Criminal penalties may include a year or more of jail time, supervised release, and a fine of up to $100,000. It is important to file taxes by the due date, even if you cannot pay your taxes in full. If you are unable to pay your taxes, the IRS offers several payment options, including setting up a payment plan. If you are struggling financially, you may also be eligible for tax relief.

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What are the penalties for not filing taxes?

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