What happens if you file your taxes late?

If taxes are filed after the due date, or not paid in full by then, a failure-to-file penalty can be applied by the Internal Revenue Service. Under special circumstances, a six-month extension may be granted. Additionally, if taxes are filed late, loan approvals may be delayed and tax refunds withheld.

The IRS may file a tax return on behalf of a late filer. In such cases, exemptions and deductions may be lost, and the IRS mails a Notice of Deficiency to an address found on past tax returns. Interest charges and late payment penalties apply and can total up to 25 percent of the unpaid taxes.