by 
The Curious Bag
-
It may seem innocuous to simply not file your taxes by the deadline and continue to let it slide for a while longer. However, the state and federal authorities take this choice very seriously and heavy penalties may ensue.
Significance
The failure to file a tax return without a valid excuse may result in a penalty of 5 to 25 percent of taxes owed. This is calculated on a monthly basis.
Effects
It is considered a misdemeanor under the Internal Revenue Code Section 7203 to not file a return without a valid reason. It may also ascend to felony charges depending on circumstances surrounding the non-filing of taxes.
Considerations
If you don't file taxes yourself, the IRS may do it for you. However, the IRS may not factor in exemptions and deductions that you could claim.
Warning
If not filing a tax return becomes a felony, federal law imposes a fine of up to $100,000 and possible imprisonment for up to five years.
Prevention/Solution
The glaring solution to avoiding penalties from not filing taxes is to always file your taxes on time. First-time offenders do not generally get the book thrown at them as long as they file once notified or audited.
Source:
IRStaxattorney.com: Background Information on IRS Tax Penalty
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC