The Tax Mistake 1 in 3 People Make
Written by
Josephine Nesbit
Edited by
Amen Oyiboke
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Procrastination is a challenge we’ve all faced at one point in our lives — but it’s not the best idea if you’re putting off doing taxes.
According to financial services company IPX1031, 31% of Americans procrastinate on filing their taxes and 1 in 4 do not feel prepared to file their taxes in 2025. Stress was the most cited reason for the procrastination, as well as the process being too complicated and they want to make sure it’s correct before filing. Others also found the process to be too time consuming.
But waiting until the last minute can cost you. Here are the potential consequences if you’re not well prepared for your taxes and how you can avoid procrastinating.
The Consequences of Procrastination
Ryan Losi, a certified public accountant and executive vice president with Piascik, told CNBC Make It that this is a big mistake. That’s because, whether you expect a refund or a bill, getting a surprise close to the filing deadline could leave you unprepared. If you prepare your taxes as soon as possible, Losi said you can make a plan, set money aside over the next two months, and pay it by April 15.
And if you can’t pay your tax bill on time, then you’ll be required to pay a failure to pay penalty.Â
According to the IRS, the failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid up to 25%. The agency also charges interest on penalties until you pay your balance in full.
If you go long enough without paying, the IRS can garnish your wages, put a lien on your property or revoke your passport.
How To Avoid It
To avoid procrastinating, Losi recommends just starting the process of preparing taxes early, like gathering paperwork and getting an estimate of what you’ll owe from tax preparation software. If you have your numbers together early, then you can decide when to file, he added.
Another tip from Dave Ramsey’s website is to give yourself a fake deadline well before Tax Day and file early. You can also save time by taking the standard deduction if your itemized deductions are less than the standard deduction, which is $14,600 for individuals and $29,200 for married couples.
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