What If I File Late?

If you file your individual return late, you can be subject to two penalties, plus interest, calculated on the balance of tax owed with the return.

The LATE FILING penalty is 5% of the tax, per month (or part of a month), to a maximum of 25%. If the return is filed more than sixty days late, the late filing penalty is the higher of $100 (but not more than the amount of the tax) or the 5% per month penalty mentioned already.

The LATE PAYMENT penalty will apply to required payments made after the due date (including extensions), and is computed as a half percent per month (.5%) for each month (or part of a month) due. However, the combined late payment and late filing penalties generally cannot exceed 5% per month to a maximum of 25%. Interest is compounded daily, on the amount paid after the due date (including extensions). The rate varies each quarter, and is announced by the Internal Revenue Service.

In some case, there may be additional penalties assessed for failure to prepay estimated taxes during the tax year, for certain transactions, and for negligence.

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