FADL 1.3 What happens if I don't file?

What can further penalties or complications be related to?

• Overpaying taxes

• Filing for an extension

• Late filings

• Missing government benefits

What is the penalty for filing your taxes each month for the first 5 months late?

• 15% of your original tax bill per month

• 10% of your original tax bill per month

• 5% of your original tax bill per month

• 2% of your original tax bill per month

What is the minimum penalty for filing your taxes more than 60 days after the tax deadline

• 75% of your unpaid tax

• 125% of your unpaid tax

• 50% of your unpaid tax

• 100% of your unpaid tax

What should you do if you are not ready to file your taxes on time?

• Wait for the IRS to contact you

• Pay the penalty upfront

• File for an extension

• Ignore the deadline

What is the potential consequence of failing to file taxes in an attempt to avoid paying?

• Difficulty in applying for government benefits

• Criminal tax evasion charges

• Higher tax bill

• additional penalties

What can be affected if you don't file your taxes in recent years?

• Eligibility for government benefits

• Receipt of Covid-19 Stimulus Payments

• Ability to apply for mortgages

• All of the above

What should gig workers or self-employed individuals do to avoid a hefty tax bill?

• Underreport income

• Make quarterly estimated payments

• Avoid filing taxes altogether

• Delay paying taxes until the end of the year

What can happen if an audit finds signs of fraudulent behavior?

• Jail time

• Higher penalties

• Inability to apply for federal loans

• Loss of government benefits