As a taxpayer, filing your taxes on time is important to avoid penalties and interest. If you miss the deadline for filing your taxes, you may be subject to a fine from the IRS. So, what is the penalty for filing taxes late?
The penalty for filing taxes late is typically 5% of the unpaid taxes for each month or part of a month that your return is late, up to a maximum of 25%. If you file your return more than 60 days after the due date, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less.
Late Tax Filing Penalties
If you owe taxes and don’t file your return on time, you may also be subject to a separate penalty for failing to pay taxes on time. This penalty is typically 0.5% of the unpaid taxes for each month or part of a month that your payment is late, up to a maximum of 25%.
Remember, filing your taxes on time is essential to avoid penalties and interest. If you cannot file your taxes by the deadline, consider filing for an extension to avoid the late filing penalty.
If you need help filing your taxes or have questions about your tax situation, consider consulting with a tax professional. Our team of experienced professionals can help ensure your tax returns are filed accurately and on time, reducing your chances of penalties and interest.
If you’re looking for professional tax preparation and bookkeeping services, we’re here to help. Contact us to schedule a consultation and learn how we can help you save time and money on your taxes this year.