If you find yourself in this situation, you have a few options available, such as: Regardless of whether you are due a refund or owe, there is another point to keep in mind: If you never file your return, there is no limit on how many years the IRS can go back to assess and collect tax. The maximum late filing penalty is 25% of the amount due.You are also looking at a late filing penalty of 5% of the unpaid tax per month, plus interest.You'll also likely owe interest on whatever amount you didn't pay by the filing deadline.The maximum late payment penalty is 25% of the amount due.You'll likely end up owing a late payment penalty of 0.5% per month, or fraction thereof, until the tax is paid.If you haven't paid all of the tax you owe by the filing deadline: This applies to a very tiny percentage of taxpayers. Some tax elections must be made by the due date, even if you have a refund coming.So, the sooner you file, the sooner the clock starts ticking. The statute of limitations for the IRS to audit your return won't start until you actually file your return.You can't get your money back until you file, so you should file as soon as you can to get your money as soon as possible.Even if you have a refund coming, consider the following: That's not to say there aren't very good reasons for filing on time. If you have a refund coming from the IRS-as about three out of four taxpayers do every year-then there is no penalty for failing to file your tax return by the deadline, even if you don't ask for an extension. However, this might not be the case for state taxes. This is one of the great little secrets about the federal tax law. The consequences differ depending on whether you owe the IRS money or the IRS owes you a refund. Filing with TurboTax is fast, easy and guaranteed to get you the biggest refund you deserve. If you missed the deadline and did not file for an extension, it's very important to file your taxes as soon as possible. However, this might not be the case for state taxes. If you have a refund coming from the IRS, then there's no penalty for failing to file your tax return by the deadline, even if you don't ask for an extension.
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