How Do I Calculate the Late Penalty for Filing Taxes?
All taxpayers who do not pay the full amount of their tax owed by April 15 will be assessed a failure-to-pay penalty. Those who owe tax and do not file, or postmark, their returns on or before April 15 also will be assessed a failure-to-file penalty. Fortunately, figuring the late penalty for filing taxes is fairly easy.Failure-to-File PenaltyKeep in mind that failure-to-file penalty is substantially more than the failure-to-pay penalty. The failure-to-file penalty is currently 5 percent of the unpaid tax for each month the return is late. Also, the failure-to-file penalty was increased in 2009 for taxpayers who are more than 60 days late filing their tax returns. There is now a minimum penalty of $135 or 100 percent of the unpaid tax, whichever is less.Failure-to-Pay PenaltyThe failure-to-pay penalty is 0.5 percent of the unpaid tax for each month the tax remains unpaid. If you do not pay the full amount or make arrangements to pay, the Internal Revenue Service will send you a demand
