If you don’t file nor pay
If you didn’t file for an extension and you still have taxes five months after the deadline, the filing penalty will max out. That means that the 25% penalty of the owed amount will increase until you pay the whole debt.
What can you do to avoid it?
Well, the best and smartest thing that you can do is to request an extension. That way you will have enough time to sort things out and you will also avoid the penalty. But make sure you don’t file after the filing deadline.
Usually, you must submit this before April 15th. That way, you’ll have the time to consult a professional regarding your taxes and make sure you have everything set.
