Late Filing/Balance Due Tax Returns

The penalty for late filing of your federal return is generally 5% of the amount due for each month or part of a month the return is late. The penalty generally does not exceed more than 25% of the tax due. If the return is more than 60 days late, the minimum penalty is $100 or the amount of the tax due, whichever is smaller. Similar penalties apply to your state return.

The penalty for late payment of the tax is generally 1/2 of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty generally can't exceed 25% of the unpaid amount. A similar penalty applies to your state return.

In addition to the above penalties, the IRS charges interest on the balance due, which begins to accrue on the balance due beginning from the due date of the return. Similar rules apply to your state return.

EXTENSIONS - Extensions extend your time to file and will eliminate the late filing penalty.  Extensions will NOT change the late payment penalty or interest charges.

If you are unable to pay the balance due in full, please pay as much as possible with your returns to minimize the amount subject to penalties and interest. In the event that you receive any correspondence relating to your returns, please contact me immediately so that we may assess your situation.