While there are many taxpayers who are not required to file a tax return, the majority of people are required to file taxes by the end of the financial year. Failing to do the same can result in numerous issues for people, including monetary loss. So, if you are wondering what happens if you don’t file taxes, then this is the guide where you can learn about the implications of not filing your taxes.
When are you required to file taxes?
Before we explain to you what happens if I don’t file my taxes, you should also know whether you are one of those people who are required to file a tax return or not. Whether to file a tax return depends on numerous factors, including your income type, amount, tax filing status, and age, among other factors.
Generally, not everyone is required to file a tax return every year. You are only subject to filing a tax return when your total income exceeds a certain limit, or you meet the requirements to file the tax return. Typically, if your income is less than the Standard Deduction, then you are not required to file it. However, even if this is the case, you can be asked to file a tax return if you meet any of the conditions that we are presenting here.
- If you earn more than the Standard deduction.
- If you have any special circumstances under which you should file, such as earning $400 or more of net self-employment income.
- If you have unearned income of more than $1,350 for 2025 ($1,300 for 2024) as a child claimed as a dependent.
If you fall under any of these conditions, you must file a tax return. However, you should keep in mind that these are only a few conditions; there can be numerous other situations in which you can also be asked to file a tax return.
What will happen if you do not file your taxes or file them late?
Now, the bigger question is what happens if you don’t file your taxes or file them after the due date. If you are one of those people who has not yet filed his or her tax return, the IRS might send you a letter asking you to do so. The IRS systems that are usually in place would check your income and withholding amounts and, based on that, would try to figure out if you owe tax or not. If the IRS believes that you do owe them money, then the chances are that you will be sent a letter asking you to file a return. The IRS usually has your income data in its databases, taking into account what was disclosed on W-2 and 1099 forms.
If you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to File Penalty. The IRS, in addition to this penalty, usually charges interest on the tax debt outstanding according to the time period the debt has lasted.If you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to FIf you owe taxes and do not file your return on time, the IRS will impose upon you a so-called Failure to F
If you filed a return within the deadline but did not pay the tax due when it was due, the IRS is likely to impose a penalty on you.
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