What is a consequence of not filing taxes on time in California?

Not filing taxes on time in California leads to the assessment of penalties. This occurs because the state imposes strict deadlines for tax filings, and missing these deadlines can trigger automatic penalties. These penalties are designed to encourage compliance with tax laws and ensure that individuals and businesses fulfill their tax obligations in a timely manner.

When an individual or entity fails to file their tax return by the deadline, they may incur a late filing penalty, which typically varies based on how late the return is. Additionally, if they owed taxes and did not pay them by the due date, they could also face interest charges on the unpaid amount. This promotes the importance of timely filing to avoid additional costs associated with penalties and interest.

In contrast, increased refunds, reductions in taxable income, and immediate audits do not directly correlate with the failure to file taxes on time. An increased refund would generally result from overpayment rather than a result of delayed filing. A reduction in taxable income pertains more to deductions or credits than timing, and while audits can occur, they are not an immediate consequence of late filing. Thus, the consequence most directly associated with not filing taxes on time is the assessment of penalties.