Pay IRS now if you still owe taxes
If you still owe taxes and missed the April 15 deadline for filing and payment, you could be incurring interest and late penalties as you read this.
File and pay the IRS pronto!
If you file your federal tax return late and owe taxes with the return, these two main penalties could hurt you:
- The failure-to-file penalty is normally 5% of the unpaid taxes for each month or part of a month that a return is late. It will not exceed 25% of your unpaid taxes.
- If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100% of the unpaid tax.
There are also additional penalties for a late payment and a combined penalty if you are both a late filer and a late payer.
Of course, if you requested an extension to file your income tax return by the tax due date and paid at least 90% of the taxes you owe, you may not face a failure-to-pay penalty. But you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 15 due date.
Also, you won’t have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time.
File even if you can’t pay
In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty. So, if you can’t pay in full, at least file your tax return and pay as much as you can. Here at Williams & Kunkel, CPA, we can work with the IRS to help you resolve your tax debt.