Tag #Financial Consequences

What are the immediate and long-term consequences of not filing taxes by the April 15th deadline?

Failing to file taxes by the April 15th deadline results in a 5% penalty on unpaid taxes for each month the return is late, up to a maximum of 25%. The IRS will pursue increasingly aggressive collection methods, including liens, levies, wage garnishment, and asset seizure, if taxes remain unpaid. Ignoring IRS notices can lead to a substitute return being filed, often resulting in a higher tax liability.