What are potential consequences of filing a tax return late?

Filing a tax return late can lead to several significant financial consequences. The correct answer highlights that one might face potential fines, interest on any unpaid taxes, and increased scrutiny from tax authorities.

When a taxpayer submits their return after the deadline, the tax authority typically imposes a late filing penalty. This fine increases the overall tax liability, meaning the taxpayer must pay more than they originally owed. Additionally, if taxes are due and not paid by the deadline, interest accrues on the unpaid amount, further increasing the financial burden. This situation also raises the likelihood of an audit or increased scrutiny because tax authorities notice patterns that might suggest non-compliance or errors in previous filings.

The other options do not accurately reflect the consequences of a late tax return. While some might hope for tax refunds or additional benefits, these typically do not arise solely from filing late; rather, they are based on timely and proper claims made within the appropriate filing period. Immediate tax forgiveness is also unrealistic within the context of late filings, as penalties and interest often apply instead.