What you need to know to avoid tax penalties

With Tax Day just a few days away, the race is on to get tax returns in the mail or e-file by the due date -- unless, that is, you're filing for an extension. Most taxpayers know interest will accrue on late payments but may not be familiar with penalties. Here's what you need to know:

When you don't file your tax return on time, you're not just missing an important deadline, you're subjecting yourself to a potential failure to file penalty. The failure-to-file penalty is usually more than the failure-to-pay penalty, so if you're running late, file for an extension in order to avoid the penalty.