What can be a consequence of failing to meet tax deadlines?

Failing to meet tax deadlines can indeed lead to penalties, interest accrual, and potential loss of tax refunds. When individuals or businesses do not file their tax returns or pay their taxes on time, tax authorities typically impose penalties for late filing and late payment. These penalties can significantly increase the amount owed.

Additionally, interest continues to accrue on any unpaid taxes from the due date until the taxes are paid in full, making the overall liability even larger. Furthermore, if a taxpayer expects a refund but files late, they may forfeit that refund or it may be delayed, meaning they will not only lose access to those funds when needed but also potentially miss out on any benefits related to that refund in the interim.

In contrast, the other options do not accurately reflect the consequences of failing to meet tax deadlines. For instance, the loss of all tax deductions for that year is not a standard consequence, as taxpayers can still claim deductions for expenses incurred, but may face limitations or adjustments if filing late. Moreover, exemption from all tax obligations is not a feasible outcome; all tax obligations remain regardless of deadlines. Lastly, while missing tax deadlines can increase the likelihood of being audited, it does not guarantee an immediate audit as a direct consequence. Thus, the