The reality is, filing taxes late can have serious consequences, and what happens if you file taxes late largely depends on whether or not you owe the IRS money—or you’re even required to file (more on that later).
If you owe them money, then what will happen is that the IRS will send you a notice asking for payment and detail the penalties and interest you owe with an explanation of what those fees are.
The IRS has various options available to collect what they’re owed, such as levying wages or seizing property, and in some cases, interest rates can be up to 30%. You’ll want to avoid all this by filing your taxes on time (even early!).
A tax return is an annual federal financial report that assembles and reports tax payments, tax deductions, credits, and income received for money earned during the prior calendar year (or tax year).
Preparing your tax return can range from incredibly simple with a Form 1040 only listing your income, standard deduction, and pertinent personal information to extremely complicated with the need for hiring a tax professional.
Minors don’t need to file tax returns. However, their parents or guardians may if they qualify for the Kiddie Tax, meaning they owe taxes on investment income or earned income.
If you’re 18 or older and not claimed as a dependent by parents or guardians, you may need to file. Exceptions exist, as we’ll discuss more below under gross income requirements by filing status.