What kind of penalties and interest I will be charged of for late paying and filing?
Interest, (compounded on daily basis), is charged on any unpaid tax from the due date of the return until the date of payment at the rate of the federal short-term rate plus 3 percent. In addition, if you filed on time but didn’t pay on time, you’ll generally have to pay a late payment penalty of one-half of one percent of the tax owed for each month, or part of a month. If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause. The combined penalty is 5 percent (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%.
