THE SHOCKING TRUTH ABOUT LATE  TAX FILING PENALTIES

According to a 2022 study by the OECD, an average of 22% of individual tax filers across member countries missed the deadline in 2019.

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In the United States, the IRS (Internal Revenue Service) reported that over 54 million individual income tax returns were filed late in 2021.

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The Penalty System

The IRS charges a failure-to-file penalty of 5% of the unpaid tax for each month  the return is late, up to a maximum of 25%. Additionally, you'll be charged interest on any unpaid tax.

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United States

HMRC (Her Majesty's Revenue and Customs) imposes a late filing penalty of £100 per month (around $120 USD) for up to six months, followed by a more severe penalty of 5% of the tax owed.

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United kingdom

While the financial penalties are a burden, the hidden costs of late filing can be even more damaging.

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The Hidden Costs of Late Filing

Timely filing often allows you to claim deductions and credits that could lower your tax liability.

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Missing Out on Tax Benefits

Late filers are more likely to be flagged for an audit by tax authorities.

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Potential for Audit

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