If you didn’t file for an extension or file your tax return by 4/15/19, the best strategy is to file assoon as possible. If you can’t pay, still file the return.
It can even escalate to a criminal matter if you do NOT file your returns. Not paying isn’t ideal either, but at least no one’s going to jail for that. You can generally work out an installment agreement or settlement with the IRS if you owe and can’t pay.
But if you don’t file, they’ll eventually file for you. And when they do, they won’t allow any deductions plus hit you with a lot of penalties and interest.
A failure-to-file penalty is 5% of the tax due for each month (or part of a month) is assessed for not filing. That means you’ve got an annual interest rate of 60% just on that alone.Remember, if you file and can’t pay, you will not have that penalty.
If it’s your first time filing late and you have a good reason why you didn’t, it is possible to get an abatement from the IRS.
No matter what’s happened, it’s one of those things where it’s best to just get it handled. No one likes to file tax returns, but the penalty for not filing can be expensive and time consuming.