What Happens If I Don't Pay My Taxes on Time?

Marco Verch Professional Photo, Flickr // CC BY 2.0
Marco Verch Professional Photo, Flickr // CC BY 2.0

While death and taxes may be the only true certainties in life, somehow Tax Day always seems to sneak up on us. So what happens if tax season slips your mind, and you just don't file anything?

It depends. If you already know you're not going to get your taxes done by Tax Day, you can file for an extension. You can get an extra six months to file federal taxes by filling out a form and estimating (and paying) how much you'll owe for that year.

While you may be granted a filing extension, you are still required to pay your taxes by the regular due date: If you don't hand the IRS at least an estimated amount by April 15, you'll be charged a fee equal to .5 percent of the tax you owed in the first place per month it was left unpaid (up to 25 percent). If you ignore repeated notices from the IRS, that .5 percent increases to 1 percent per month. And you'll have to pay interest on the money you haven't given over (3 percent plus the federal short-term rate, which changes every three months, compounded each day).

If you don't file any federal income tax return at all by mid-April, you'll be slapped with a fine—5 percent of the amount you already owe for each month you're overdue, up to 25 percent. If you file your return more than two months late without a good excuse, you'll pay a minimum of $135 in penalty fees, or the balance of the tax you owe, if that total is less than $135. (According to the IRS's website, "The total penalty for failure to file and pay can be 47.5 percent [22.5 percent late filing and 25 percent late payment] of the tax owed.")

If you do a little math, you'll see that it usually pays to go ahead and file your return or get an extension, even if you can't pay your taxes immediately. Here's how Turbotax explains it:

Example: Let's say you didn't file your return or an extension by April 15, and you still owe the IRS an additional $1000.

Scenario 1: You file an extension on or before April 15 and pay your $1000 bill on April 25 (10 days late). Your penalty would be $5 (the 0.5 percent late-payment penalty applied to $1000), plus another dollar or so for the interest.

Scenario 2: You didn't file an extension, and you file your return on April 25 (10 days late) along with your $1000 payment. Your penalty would be $50 (the 5 percent late-filing penalty applied to $1000), plus another dollar or so for the interest.

Scenario 3: You file your return five years late, along with your $1000 payment. Your penalty would be around $534 (the maximum late-filing penalty of 25 percent applied to $1000, plus 5 percent interest compounded daily assuming the interest rate doesn't change).

If you don't owe any taxes because your employer withheld more than necessary and you are due to get a tax refund, you have three years to file your taxes before the IRS will keep that money. So as long as you get around to it by April 2022, you'll still get that money back. After those three years, the IRS will keep your whole refund, and it won't count toward next year's tax bill, either.

Say you just don't want to pay your taxes (a crime, just to be clear). How long before the IRS will come after you?

If your penalties and back-taxes add up to more than $25,000, someone from the IRS is going to come knocking at your door. In 2016, the IRS investigated 206 people for regularly failing to file their taxes, and put 159 people in jail for an average of three years. (Remember, it was the IRS that took down Al Capone.)

If you are a chronic non-filer and don't file your taxes even after warnings from the IRS, the government will go ahead and estimate what you owe, calculating what's called a "substitute for return." This total doesn't include deductions that you might have been eligible for, meaning that if you let the government do your taxes for you, you'll probably end up with a heftier bill.

And that's just at the federal level. While states vary on how they treat people who don't file their taxes, they slap penalties and interest on late returns and payments, too. Some states will even take your federal tax refund to pay your state back taxes. However, in many states, being approved for a federal tax extension also gets you an automatic extra six months on your state income taxes.

The lesson: If there's any chance you'll be late filing your return this year, ask for an extension ASAP.

A version of this story was first published in 2016.

Celebrate the Holidays With the 2020 Harry Potter Funko Pop Advent Calendar

Funko
Funko

Though the main book series and movie franchise are long over, the Wizarding World of Harry Potter remains in the spotlight as one of the most popular properties in pop-culture. The folks at Funko definitely know this, and every year the company releases a new Advent calendar based on the popular series so fans can count down to the holidays with their favorite characters.

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Right now, you can pre-order the 2020 edition of Funko's popular Harry Potter Advent calendar, and if you do it through Amazon, you'll even get it on sale for 33 percent off, bringing the price down from $60 to just $40.

Funko Pop!/Amazon

Over the course of the holiday season, the Advent calendar allows you to count down the days until Christmas, starting on December 1, by opening one of the tiny, numbered doors on the appropriate day. Each door is filled with a surprise Pocket Pop! figurine—but outside of the trio of Harry, Hermione, and Ron, the company isn't revealing who you'll be getting just yet.

Calendars will start shipping on October 15, but if you want a head start, go to Amazon to pre-order yours at a discount.

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Are Halloween Pumpkins Edible?

Diane Helentjaris, Unsplash
Diane Helentjaris, Unsplash

When people visit their local family-owned pumpkin patch around Halloween, they aren’t usually looking for dinner. The majority of the nearly 2 billion pounds of pumpkins cultivated in the U.S. each year are carved up instead of eaten, making the squash a unique part of the agriculture industry. For people who prefer seasonal recipes to decorations, that may raise a few questions: Are the pumpkins sold for jack-o’-lanterns different from pumpkins sold as food? And are Halloween pumpkins any good to eat?

The pumpkins available at farms and outside supermarkets during October are what most people know, but that’s just one type of pumpkin. Howden pumpkins are the most common decorative pumpkin variety. They’ve been bred specifically for carving into jack-o’-lanterns, with a symmetrical round shape, deep orange color, and sturdy stem that acts as a handle. Shoppers looking for the perfect carving pumpkin have other options as well: the Racer, Magic Wand, Zeus, Hobbit, Gold Rush, and Connecticut field pumpkin varieties are all meant to be displayed on porch steps for Halloween.

Because they’re bred to be decoration first, carving pumpkins don’t taste very good. They have walls that are thin enough to poke a cheap knife through and a texture that’s unappealing compared to the squashes consumers are used to eating. “Uncut carving pumpkins are safe to eat; however, it's not the best type to use for cooking,” Daria McKelvey, a supervisor for the Kemper Center for Home Gardening at the Missouri Botanical Garden, tells Mental Floss. “Carving pumpkins are grown for their large size, not the flavor. Their flesh can be bland and the fibers are very stringy.”

To get the best-tasting pumpkins possible this autumn, you’re better off avoiding the seasonal supermarket displays. Many pumpkin varieties are bred especially for cooking and eating. These include Sugar Pie, Kabocha, Jack-Be-Little, Ghost Rider, Hubbard, Jarrahdale, Baby Pam, and Cinderella pumpkins. You can shop for these varieties by name at local farms or in the produce section of your grocery store. They should be easy to tell apart from the carving pumpkins available for Halloween: Unlike decorative pumpkins, cooking pumpkins are small and dense. This is part of the reason they taste better. McKelvey says. “[Cooking pumpkins] are smaller, sweeter, have a thicker rind (meatier), and have less fibers, making them easier to cook with—but not so good for carving.” These pumpkins can be stuffed, blended into soup, or simply roasted.

If you do want to get some culinary use out of your carving pumpkins this Halloween, set aside the seeds when scooping out the guts. Roasted with seasonings and olive oil, seeds (or pepitas) from different pumpkin varieties become a tasty and nutritious snack. Another option is to turn the flesh of your Halloween pumpkin into purée. Adding sugar and spices and baking it into a dessert can do a lot to mask the fruit’s underwhelming flavor and consistency.

Whatever you do, make sure your pumpkin isn’t carved up already when you decide to cook with it. There are many ways to recycle your jack-o’-lanterns, but turning them into pie isn’t one of them. "If one does plan on cooking with a carving pumpkin, it should be intact,” McKelvey says. “Never use one that's been carved into a jack-o'-lantern, otherwise you could be dealing with bacteria, dirt and dust, and other little critters.”