Asked in
Taxes and Tax Preparation
Federal Laws
Income Taxes
Tax Refunds

What happens if you file tax return without sending payment?

Answer

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April 29, 2009 12:25PM

After the due date passes, penalties and interest will be added to the unpaid taxes.

For federal income taxes, the interest rate is currently 4% annually, but the interest rate is adjusted every quarter. The penalty is 0.5% per month for each whole or partial month.

Even if you can't pay your taxes, it is better to file your tax return on time. If you don't file your tax return on time, the penalty increases from 0.5% per month to 5.0% per month.

Each state sets its own interest and penalties.