What's the Worst That Will Happen If You File Your Taxes Late (or Not at All)?

With theApril 15 tax deadlinelooming tomorrow, many Americans are rushing to complete their returns.

Personally, my phone is blowing up with all my procrastinator friends asking last-minute questions.

And good for them for making the deadline at all, no matter how frenzied.

But what happens if you miss the deadline?

The consequences vary dramatically depending on whether you simply file late ordon’t file at all.

What happens if you file your taxes late?

That means as long as yourequest an extensionby tomorrow, you have until Oct. 15 to file without penalties.

Interest accrues on both unpaid taxes and penalties from the due date until the debt is settled.

These penalties apply from April 15 until you pay your tax bill in full.

Check with your state’s tax agency for their specific extension procedures.

What happens if you don’t file your taxes at all?

This penalty isten times higherthan the failure-to-pay penalty.

Plus, the same interest charges that apply to late payments also apply here.

However, you must file within three years of the original due date to claim your refund.

After three years, you permanently forfeit your refund.

That means penalties up to $100,000 and five years imprisonment.

Request a payment plan: The IRS offers installment agreements for taxpayers who can’t pay in full.

The penalties for non-filing are substantially higher and can lead to much more serious consequences.

This could also buy you time toconsult with a qualified tax professional.