What happens if a taxpayer does not file their return by the deadline?

When a taxpayer fails to file their return by the deadline, one significant consequence is the potential for penalties and interest on any taxes owed. The Internal Revenue Service (IRS) imposes a failure-to-file penalty, which is typically a percentage of the unpaid tax for each month the return is late. Additionally, if there are taxes owed that remain unpaid, interest on these amounts will accrue from the due date of the return until the balance is settled. This ensures that the taxpayer is incentivized to file their return on time and pay any taxes owed to avoid additional financial burdens.

While penalties may apply in other scenarios and tax benefits can be affected by not filing, the specific repercussions related directly to the filing of the return and associated tax liabilities are entirely encapsulated in the possibility of accumulating penalties and interest. This highlights the importance of adhering to tax deadlines to maintain compliance and avoid these financial consequences.