What kind of penalties and interest will I be charged for paying and filing my taxes late?
A Each individual is granted a six-month automatic extension of time to file a return (not to pay). During this period, only the extension penalty will apply (see next question on extensions). At the end of six months or once the return is filed, the extension period expires. If a return is filed within the extension period but not paid in full, a 10% or $20 late payment penalty will be assessed in addition to any applicable extension penalty. After the extension period has expired, if a tax due return is filed, there will be both a failure to file penalty of 10% or $20, whichever is greater, and a failure to pay penalty or 10% or $20, whichever is greater. Interest is assessed on any unpaid tax from the original due date (usually April 15th) to the date the tax is paid. For current and previous interest rates, follow this link.
Interest, compounded daily, is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is the federal short-term rate plus 3 percent. That rate is determined every three months. For current interest rates, go to News Releases and Fact Sheets and find the most recent Internal Revenue release entitled Quarterly Interest Rates. 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, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy. Beginning January 1, 2000, if you filed a timely return and are paying your tax pursuant to an
nterest, compounded daily, is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is the federal short-term rate plus 3 percent. That rate is determined every three months. For current interest rates, go to News Releases and Fact Sheets and find the most recent Internal Revenue release entitled Quarterly Interest Rates. 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, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy. Beginning January 1, 2000, if you filed a timely return and are paying your tax pursuant to an
” IRS.gov http://www.irs.gov/individuals/article/0,,id=96623,00.html The apparent possibilities for criminal penalties — under Title 26 USC 7203 — are indicated in the first of the following documents, and described further in the second: “Related Statutes and Penalties – General Tax Fraud” IRS.gov http://www.irs.gov/compliance/enforcement/article/0,,id=106790,00.html “Part 9. Criminal Investigation — Chapter 1. Criminal Investigation Mission and Strategies — Section 3. Criminal Statutory Provisions and Common Law” [browse by finding in page: 7203] IRS.gov http://www.irs.gov/irm/part9/ch01s03.html – justaskscott Searched IRS site for various combinations of: penalties penalty file filing “willful failure to file” Browsed potentially relevant results on IRS site and links from them.
