Well, extension deadline day is here. Today is the FINAL day to file your 2025 return if you filed an extension (without penalties…of course). So, what happens if you don’t make it?
A few things…
A failure-to-file penalty: 5% of the unpaid tax for each month (or part of a month) the return is late, up to 25%.
A failure-to-pay penalty: 0.5% of the unpaid tax per month, which continues until the balance is paid.
Interest: this accrues on unpaid tax and on the penalties, and it compounds daily.
A minimum penalty: if your return is more than 60 days late, a minimum penalty may apply, even on a small balance.
The good news? If you’re owed a REFUND, there’s typically no failure-to-file penalty.
What’s the lesson here? Stay on top of things! Need help? You know where to turn.