What constitutes a failure to file?

The concept of "failure to file" primarily revolves around the taxpayer’s obligation to submit their tax return by the required deadline. According to IRS standards, if a taxpayer does not file their return on or before the due date and has a balance due, this situation is categorized as a failure to file.

When a return is not submitted by the due date, particularly when there are taxes owed, it triggers consequences such as penalties and interest on the unpaid tax. This emphasizes the importance of meeting the filing deadline, as timely filing can help avoid additional costs and legal ramifications.

In contrast, filing an extension allows for more time to submit the return but does not exempt the taxpayer from the responsibility to pay any taxes owed by the original deadline. Submitting a return without payment is not classified as "failure to file," as the return itself has been submitted—albeit with an outstanding balance. Furthermore, filing late can mitigate penalties, provided that the return is filed and full payment is made, making it not a case of failure to file in the strictest sense.