Legal Definition of Overdue Taxes
Local, state, and federal taxing authorities establish firm dates on which taxes of all types are due to be paid. The most well-known of these tax deadlines in the United States is April 15 for the filing of federal income tax returns and payment of taxes due.
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Function
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Tax deadlines are established to ensure the proper functioning of governmental agencies and provision of services.
Identification
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The definition of an overdue tax payment is one that is made after the legal deadline.
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Misconceptions
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The most common misconception is that by requesting an extension you are able to pay taxes at a later date. In fact, the taxes are still due on the deadline date; the extension allows you to file the return beyond the deadline.
Significance
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The failure to pay taxes on time results in the imposition of interest and penalties on top of the base obligation.
Warning
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Repeated failure to pay taxes on time, or the accumulation of overdue taxes, results in additional legal action taken against you by the taxing authority.
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References
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- Photo Credit Image by Flickr.com, courtesy of Andrew Magill
