What are some consequences of late tax filing?

• A. Filing late can incur penalties and delay refunds.
• B. There are no penalties for late filing if you expect a refund.
• C. Filing late always results in a higher tax rate.
• D. Late filing guarantees you will owe more money next year.

Answer: (C)

Late tax filing can trigger penalties and interest and can delay any refund you’re owed. The amount of tax you owe for the year is determined by your income and filing status and the year’s tax brackets; when you file does not change those brackets. If you owe taxes and file after the deadline, the IRS can charge a failure-to-file penalty and interest on the unpaid amount, and these charges grow the longer you wait. If you’re due a refund, filing late will typically delay receiving that money, and there are still reasons to file promptly (such as staying within the time limits to claim a refund). In short, late filing mainly brings penalties, interest, and refunds delays, not changes to your tax rate or guaranteed increases in what you owe next year.