What Happens if You File Taxes Late? Here is the Good News and Bad

The reality is, filing taxes late can have serious consequences, and what happens if you file taxes late largely depends on whether or not you owe the IRS money—or you're even required to file.

The IRS has various options available to collect what they're owed, such as levying wages or seizing property, and in some cases, interest rates can be up to 30%.

What is a Tax Return?

A tax return is an annual federal financial report that assembles and reports tax payments, tax deductions, credits, and income received for money earned during the prior calendar year (or tax year).

 The IRS may not require you to file an individual tax return (Form 1040), depending on three specific criteria you must meet (usually):

Do I Need to File a Return?

Three specific criteria you must meet (usually): – Your Age – Filing Status – Gross Income

Now, if you still aren't convinced filing a return is the right move, I'll really need to lean in and hammer home the fear because not filing a return will get costly and fast.

What Happens If You Don’t File Taxes?

You're going to get hit with penalties and interest. If you didn't expect that right off the bat, you don't know the federal government. 

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