What are the potential consequences of filing taxes late?

Filing taxes late can lead to several significant consequences, primarily in the form of penalties, interest charges, and the possibility of an audit. When a taxpayer does not file their return by the due date, they may incur a failure-to-file penalty, which is a percentage of the unpaid taxes that increases over time. Additionally, if taxes owed are not paid by the original due date, interest will accrue on the outstanding balance from that date until it is paid in full.

These financial repercussions aren't just limited to the penalties and interest; filing late might also draw the attention of the Internal Revenue Service (IRS), potentially leading to an audit. Audits occur more frequently when there are discrepancies or when there's a pattern of non-compliance, which can be heightened by late filings.

While other options might seem appealing, they do not apply in the context of filing taxes late. Increased refunds are generally associated with timely filings and qualifying deductions or credits. Immediate tax credits may only be received if the appropriate forms are submitted on time, which late filing disrupts. Automatic extensions allow for more time to file but do not extend the deadline for payment, and even if a taxpayer files for an extension, failing to pay any owed taxes by the original deadline can still lead