What happens if you file your income taxes late?

Answer 1

First, filing the forms late is different than paying late.

It is very common, virtually required, to file late under many circumstances. For example, many people need to include information that cannot be received before the due date (The form 1065 & K1, for those in partnerships generally cannot be received until after the April 15 due date). Following the process to file late does NOT increase your chance of audit, or any additional risks.

There is no problem with filing the complete form late if you send a request for "an automatic extension of time to file" in by the original due date. This is a very simple form and provides an extension of time to file until October 15 of the year. A link is provided in the related links.

However, you must pay what you owe by the April 15 date. The extension form has a place to show this. Estimating the amount you owe really isn't that hard, and especially if you had income withheld, and most people have too much withheld and are due refunds, may not require any current payment.

If you do not pay what is due the outstanding tax balance will accrue interest and possibly penalties, increasing the total amount you will owe. If you can't pay the full amount that you owe by April 15, pay as much as you can to minimize the interest and penalty charges.

There are many reasons to file as soon as possible. The statute of limitations (that is the SOL on how long you can be audited), does not start to run until a return is filed. Hence, failing to file one leaves you perpetually open to review and assessment.

Finally, a personal note: Many tax practitioners have found that the overwhelming number of people who failed to file returns, probably because of the fear and complexity they see being involved, or a belief they can't pay, or can get away without doing so, actually have refunds coming when the information is completed. It's one of those things that has to be done, and isn't going to go away by ignoring it....and in all likelihood will be much easier (and even beneficial), to just get done with ASAP.

If you do file your taxes late, and were required to pay more, by not filing on time you will also incur substantial penalty and interest charges, as well as be suspect as someone not willing to comply with the rules. These are all very bad things.

And one very important final thing:

While all States have a provision for it, not all States accept the Federal extension of time to file form. Some require you send them either it, or their own. (They all require you would at least attach a copy to your return when filed, so make sure you keep one).

Check out the related links for a link that will provide you the forms and instructions needed for each State.

Answer 2

Generally, your base period is for the past 12 months. When you do file they usually will allow only retro-activity to the last week from your filing date, so the longer you wait, the less you will receive, because your base period is getting shorter. Each state is different, so you need to file or contact your own state unemployment office for more official information.