Pop quiz: what’s important about April 15th? In case you didn’t know – or just didn’t have it on your mental radar – it’s Tax Day! You’re welcome for the reminder! 🤪
There’s still plenty of time to get off your butt and get it done, but if you’re the procrastinator type, what happens if you still haven’t gotten around to it when Tax Day actually arrives? Buckle up, and let’s jump onto the wild ride that is filing your taxes late. Spoiler alert: It's not as fun as it sounds…and it’ll cost you. These are the kind of happygrams you really don’t want to get!
Here are Five Fast Facts on why procrastinating on your taxes is a bad idea:
- 🤦 The "Oops, I Forgot" Penalty - Think forgetting your anniversary is bad? Try forgetting to file your taxes. The IRS slaps a failure-to-file penalty of 5% of the unpaid taxes for each month your return is late, up to 25%. That's like adding insult to injury, but with dollar signs.
- ⏱️ The "I'll Pay You Later" Surcharge - Decided to file but not pay? The IRS has a special treat for you: a failure-to-pay penalty of 0.5% of the unpaid taxes for each month you're late, also capping at 25%. It's their way of saying, "We missed you (and know where you live)!"
- 📈 Interest: The Gift That Keeps on Giving - On top of penalties, interest accrues on unpaid taxes from the due date until you pay up. It's like the IRS's version of a subscription service you never signed up for.
- ⏳ Extensions: Not a Get-Out-of-Jail-Free Card - Filing for an extension gives you more time to file, not to pay. If you owe taxes, you're still expected to pay by the original deadline. So, while you can procrastinate on paperwork, your wallet can't.
- 🤯 The "No Refund for You" Rule - If you're owed a refund but don't file within three years, the IRS keeps your money. Consider it a donation to the "I Forgot to File My Taxes" fund.
🔥Bottom line: Filing your taxes late is like playing a game where the only prize is more bills. So, set those reminders, mark your calendars, and get those taxes filed on time. After all, the IRS isn't known for its sense of humor. Or its mercy.
Have you ever filed or paid your taxes late?
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