BANGALORE: You, yes you, can do your taxes this year. Many of you are done, most of you haven’t started, and a few of you are freaking out. Some of you are thinking: what if I just don’t file? What will happen if I don’t pay? What if I didn’t file last year or the year before that?

Some people say they work best under pressure and choose to procrastinate on important tasks like filing taxes. Everyone makes mistakes, especially when under the stress of gathering documentation, crunching numbers and lowering tax liabilities as much as legally possible. However, avoiding your annual tax return obligations can result in costly consequences that extend beyond your bank account. 

1. Penalties & Interest Assessed

The Internal Revenue Service (IRS) adds its assessment of penalties and interest to your unpaid income tax debt. These penalties can be as much as 25 percent of the amount of your unpaid taxes, according to the IRS website. The interest assessed can range from 4 percent to 10 percent, depending on how long you owe the tax debt.