Home Finance

The Internal Revenue Service (IRS) Imposes Penalties For Late Tax Return Filling

Ads

Most people have time until April 18, 2022, to complete their tax returns and pay the tax that they owed, according to the IRS. Tax day is generally April 15 each year, but due to Emancipation Day in Washington, D.C., it was driven back to this year. Additionally, due to Patriots’ Day in Maine and Massachusetts, the cut-off date for taxpayers within these states is April 19. What happens, however, if you file your taxes one day late?

The quick answer is that you’ll very certainly face IRS penalties, including interest. That is why taxpayers who require additional time to file their taxes apply for a filing extension. The extension allows individuals additional time to complete their returns, but it does not extend the date for paying taxes owed, so the IRS advises them to estimate and pay the tax due by the standard deadline.

One Day Late Tax Filling Will Be Penalized

According to H&R Block, if you complete your federal tax return perhaps one day after the due date and owe tax, you will “usually” be penalized. The IRS states in a help article regarding the failure-to-file penalty that it imposes 5% of your outstanding taxes for every partial or full month your tax return is late, up to a maximum of 25% of your unpaid taxes.

If you do not really file your tax and pay it by the deadline, you’ll have to pay a penalty, as explained by the IRS in a separate post. For every partial or full month that your tax payment is late, you will be penalized 0.5 percent of your overdue taxes, up to a maximum of 25% of your unpaid taxes.

In addition, the failure-to-file penalties will be deducted from the total amount of the failure-to-pay penalty for the months in which both fines apply.

If any penalty adheres to you, the IRS claims it will issue a notice or letter. Remember that the organization claims to levy interest on its penalties, which will increase your overall payment.

No Need To Pay A Penalty If You Owe A Federal Tax Refund

One of the “wonderful little truths about the federal tax law,” as per TurboTax, is if you owe a federal tax refund, you won’t be penalized for not submitting your tax return by the due date.
If you’ve been serving in the armed forces outside the country or live in a nationally declared disaster region, you won’t have to pay penalties on late tax returns, according to H&R Block.

Ads
Previous articleLA County’s Guaranteed Monthly Stimulus Checks: Check If You Are Eligible
Next articleAmericans Will Have A Couple Of Extra Days In 2022 To File Their Taxes