Tax Late Fees and Interest

If you missed the deadline to file your 2017 taxes, it is important to realize the longer you wait the worse your situation will become. This is, if you owe the IRS money. If you are due for a tax return, you have until year 2021 to file your 2017 taxes and receive your tax return with no penalties or late fees attached.

If you do owe money and have not paid your taxes you are facing the potential of two different penalties. These penalties are for failure to file, and also, failure to pay. Below we will explore the differences between these two penalties and what they may mean for you:

Failure-To-File Penalty

Whenever you are hit with a failure-to-file penalty you are going to be charged 5% of the taxes you owe for each month you are late. This will cap off at 25% of your total unpaid taxes. If you are over 60 days late filing your taxes, the minimum penalty is either $205 or the entire amount of the unpaid tax, depending which is less expensive.

Failure-To-Pay Penalty

The failure-to-pay penalty is .5% of unpaid taxes for each part of a month you’re late, up to 25% of unpaid taxes due. This is the penalty you’re charged if you file on time but don’t pay what you owe. However, if you request an extension to file and pay at least 90% of taxes owed, you may not be charged any failure-to-pay penalties as long as you pay the remaining 10% by the extended due date.

Combined Penalty

For failure to pay and failure to file is 5% of unpaid taxes for any month in which you owe both penalties.

If you are already late filing and paying your taxes, do not let you penalties get any worse. Work with Enrolled Agent, Sandra King, and get your taxes over with! If you do not have the money to pay your taxes off we can explore other options to find a solution to your financial dilema without making it worse.

Sandra King Enrolled Agent

Sandra King is an enrolled agent, empowered by The United States Treasury to prepare your personal or business tax filing. While her services are offered nationwide, Sandra King locally serves the greater Dallas-Fort Worth area, including but not limited to Arlington, Bedford, Colleyville, Euless, Fort Worth, Grand Prairie, Hurst, Mansfield, North Richland Hills, and Richland Hills.