8. Not filing at all
This is probably your worst nightmare. If you don’t file your taxes before April 15, you can face a failure-to-file penalty. The penalty starts accruing the day after the tax deadline and is 5% of your unpaid taxes for each month your tax return is late, up to 25%. Also, if you file more than 60 days late, you’ll pay a minimum of $135 or 100% of the taxes you owe.
File a return and contact the IRS to start an installment payment plan, if you can’t pay your full tax bill at the time it’s due. The interest rates are low, and it’s way better than failing to file, which can result in penalties and potential tax evasion charges, as you read.
