The deadline to file a tax return and pay outstanding bills has passed.
Late filers could now be hit with a financial penalty.
What is the Failure to File penalty?
The deadline to submit a tax return and pay outstanding tax bills was April 18. Some states were granted extensions, but for most the deadline was on Monday. Read more about it here.
If you missed the deadline and didn’t request an extension, you’ll likely receive a Failure to File notice from the IRS soon.
This penalty applies if you don’t file by the deadline. You’ll be required to pay a percentage of the taxes you didn’t pay on time.
The size of the fee will be based on your income. It is calculated with a combination of the amount of unpaid tax you have to pay and how late the return is. The IRS also charges interest in addition to the penalty.
If you submit more than 60 days and have an outstanding tax bill, you will get a Failure to File Penalty of minimum $435 or 100% of the tax you were required to pay, whichever is less.
What is the Failure to Pay penalty?
If you filed your taxes on time, but couldn’t pay the bill at the time, you could get a Failure to Pay penalty from the IRS.
This may apply to you if you don’t pay the tax you report on your return by the due date or approved extended due date. The financial penalty you’ll have to pay will be a percentage of the taxes.
This penalty allows online payment plans. Late filers will be able to pay off their balance over time with an installment agreement.
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