Forget to File Your Taxes? Unfiled Taxes Can Impact Your Future Plans!
Whether it's intentional or simply an oversight, filing your taxes late can lead to serious consequences. At City Tax, we’ll help you take care of your unfiled returns and stay ahead of any potential issues.
What Happens if You Have Unfiled Taxes?
Filing taxes is an important responsibility that every citizen must fulfill. Life, however, can sometimes get in the way.
Whether you haven’t filed your taxes this year or for several years, City Tax can help before a Substitute for Return (SFR) is filed on your behalf. These government-prepared returns don’t include deductions or credits you may qualify for—often resulting in a higher tax bill or smaller refund.
If you're owed a refund, filing late may lead to delays in receiving it. City Tax encourages timely filing to help ensure your refund is processed as quickly as possible.
Haven’t Filed Taxes in Years? Get Back on Track ASAP!
Consequences of Filing Late Taxes
Filing your taxes late can have serious consequences that go beyond a simple slap on the wrist.
Interest Fees
If you file late and owe taxes, City Tax will apply interest to the amount owed starting from the original due date of the return until it's fully paid.
The City Tax interest rate is based on the federal short-term rate plus 3% and is adjusted quarterly.
To view the current City Tax interest rate, please visit the official City Tax website.
Penalties
In addition to interest charges, there are various penalties that City Tax authorities may impose for filing your taxes late.
- Failure-to-File Penalty: 5% per month, up to 25%, with a minimum of $450 or 100% of the tax owed.
- Failure-to-Pay Penalty: 0.5% per month, increasing to 1% after Notice of Intent to Levy.
Tax Liens & Levies
If you ignore City Tax payment requests, they may place a lien on your property, affecting your credit and your ability to qualify for loans.
They may also garnish wages, seize bank accounts, retirement funds, or property to recover owed taxes.
If you’re unable to meet the tax filing or payment deadline, it’s important to be proactive. Applying for a payment plan can help reduce certain penalty fees and help you avoid more severe collection actions. To learn more about your tax relief options, speak to a tax consultant today!
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