1. You could get hit with penalties
IRS penalties can include:
- Failure-to-file penalty: If you don’t file taxes, the IRS generally charges 5 percent of the amount owed for each month or part of a month that a return is late.
- Failure-to-pay penalty: If you file a return but don’t pay the taxes due, your penalty is generally 0.5 percent of your outstanding balance for every month or part of a month that you don’t pay.
- Interest: On top of the fines, you’ll pay interest — at the federal short-term rate plus 3 percent, compounded daily — on the amount you owe.
A good piece of software makes tax time easier. Here are “The 5 Best Tax Software Programs for 2019.”