What can happen if you don't file your taxes?
You'll owe penalties and interest
If you file late and owe taxes, you'll owe interest, plus late filing, and late payment penalties. Those penalties are calculated as a percentage of what you owe, and increase over time. If you don't file and don't pay, penalties can grow to a maximum of 47.5 percent of your tax bill. Interest on unpaid taxes has no maximum.
Always file on time to avoid the late filing penalty - even if you can't pay. When you pre-arrange with the IRS that you cannot pay all that you owe at once, the interest rates will be lower than if the service has to come to you for payment.