CHARLOTTE, N.C. — The clock is ticking for Americans to file their income taxes, and while many people are looking for a big refund, what happens if you miss the April 15 deadline?
Tax Day is Monday and if you don't ask for more time, the consequences of not filing could bring a big cost.
The Internal Revenue Service has already received over 90 million tax returns and processed more than 88 million, according to the agency's latest data.
A report from the Wall Street Journal says nearly 20 million people are expected to ask for an extension on their 2023 federal income taxes. The IRS says individual taxpayers can do this through its Free File tool or by filing Form 4868. A six-month extension will give taxpayers until Oct. 15 to file their returns.
There are some exceptions for some taxpayers living overseas, as well as disaster victims. Extended deadlines vary by state, and tax relief deadlines are for people in disaster situations designated by FEMA. Those who don't quality and fail to file on time are subject to a penalty by the IRS.
A Failure to File penalty tacks on 5% of your unpaid taxes every month, so you could be looking at hundreds or thousands of dollars added onto what you already owe. But failing to file is a much less serious penalty than not paying the IRS.
A Failure to Pay penalty is lower, at just 0.5% a month, but the consequences of ignoring your tax bill get more severe over time, and could lead to the federal government garnishing your wages or freezing your bank account.
However, there's no penalty for filling late if you're owed a refund. You have three years to file before losing out on the money. Experts say you shouldn't procrastinate and encourage everyone to get their taxes done before any unexpected payouts.
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