For most people April 17th was the deadline to file and pay your taxes. If you missed the filing deadline but are due a refund, you don’t have to worry about any late filing penalties. However, if you owe money and were unable to file or pay on time, you will be charged interest plus penalties on the unpaid balance. Here are seven things you need to know about the penalties associated with late filing and payment.
- If you missed the filing deadline and owe money, you may be hit with two penalties. One for failing to file by the tax deadline and an additional penalty for paying late.
- The late filing penalty starts accruing the day after the filing deadline and can be as much as five percent of your unpaid taxes per month up to a maximum of 25 percent.
- If you file your 2017 return more than 60 days after the traditional or extended deadline, the minimum penalty will be the smaller of $205 or 100 percent of the unpaid taxes.
- The penalty for not paying your total balance due is 0.5 percent of your unpaid taxes. The penalty starts accruing the day after the filing deadline and applies to each month or part of the month that the payment is late. However, the penalty will not exceed 25 percent of your unpaid taxes.
- If both the failure-to-file and failure-to-pay penalties apply to any month, 5 percent is the maximum penalty you will receive for that month.
- Even if you can’t afford to pay your total balance due, file as soon as possible and pay as much as you can to minimize the interest and penalties. ezTaxReturn makes doing your taxes fast, easy and they offer various payment options to help you resolve your tax debt.
- If you requested a tax filing extension by the deadline and paid at least 90 percent of your balance, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended deadline and you will owe interest on any taxes paid after April 17th.