April 15 has come and gone, and most Americans have either filed their federal tax returns or gotten an extension. If you did neither, the consequences can be disastrous. But for some, there will be absolutely no downside to missing the April 15 deadline.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, explains why some people who ignore the April 15 tax filing deadline escape without paying anything extra. Dan notes that those who don't file generally owe interest and penalties on the amount of tax they owe. But he points out that if you're due a refund, then the way the IRS calculates interest and penalties leads to a $0 amount. Dan concludes that although you'll still want to file your return sooner than later in order to receive your refund faster, many people in that situation don't have the same pressure to file on time that those who actually owe additional tax face.
Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.
Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.