We’ve talked about the benefits of filing your taxes early. Now let’s talk about filing taxes late and what happens in that situation… It’s not good!
Filing taxes late results in major interest in penalties. The interest for filing late changes with the going interest rate. At the time of this article it is 5%. On top of that, the penalty is another 5% of your amount owing, plus 1% for each month you are late. If you have already filed late once in the last four years, the penalties become 10% plus an additional 2% per month.
As you can see, these numbers add up VERY quickly. The tax deadline is April 30th and you definitely want to ensure you have everything ready to file by that deadline.
Check out this week’s YouTube video for a breakdown of this topic. And don’t forget to subscribe to our channel for more weekly tax tips!