IRS Penalties for Late Filing of Income Tax Return

IRS Penalties for Late Filing of Income Tax Return IRS Penalties and interest may be for a number of different occurrences. Some examples are: understating your tax liability, understating a reportable transaction, file an erroneous claim for a refund or... More

IRS Penalties for Late Filing of Income Tax Return IRS Penalties and interest may be for a number of different occurrences. Some examples are: understating your tax liability, understating a reportable transaction, file an erroneous claim for a refund or credit, or file a frivolous tax submission. But the easiest way to receive a penalty is by filing late. When it comes to penalties and interest, the Internal Revenue Code may impose many different types of penalties. These can be as simple as a civil fine, or as harsh as imprisonment, depending on the particular scenario. How IRS Penalties Are Calculated Penalty for Filing Late: If a return is not filed by the due date, you may have to pay a failureto-file penalty. This amount is typically 5% per month, but not greater than 25%. The penalty is based on the unpaid amount as of the due date. Penalty for Paying Late: The Failure-to-Pay Penalty of . 5% of unpaid taxes per Month is incurred each month after taxes due are not paid. Less