Facts about failure or penalty payment

We will complete your payments
And find every dollar
you deserve

When your full service expert completes your bills,
They only sign and file when they know it’s 100% correct
And you will get the best result, guaranteed.

If you haven’t filed your tax return yet, you’re not alone. If you’re ready to apply now, let one of our experts do your taxes right. Since people who are getting refunds are rushing to file, I’m guessing you might be delaying filing because you know you’ll have bills. Well, filing late because you owe money can cost you more.

Ignoring the IRS won’t make them go away. The IRS can assess a penalty if you fail to file, fail to pay, or both. Since the penalty for failure to file is usually greater than the penalty for failure to pay, here is my number one tip for you: file your tax return before the tax deadline, even if you fail to pay. At least that way you won’t be doubling up on the fines you face.

Here are some other facts you should know about possible IRS penalties.

Filing late can increase your debt by 25%. The late filing penalty is usually 5% of the unpaid taxes for each month or part of a month that your return is late. This penalty cannot exceed 25% of your unpaid bills. This penalty will apply even if your return is only one day late. So if you file after the deadline, which is usually April 15 (April 18 for tax year 2022, because of the holiday), you’ll owe 5% more than you would otherwise.

Even if you don’t owe any taxes, there are still penalties for late filing. If you file more than 60 days after the due date, you must pay a minimum penalty of the lesser of $435 (for tax returns due in 2020, 2021 or 2022) or 100% of the unpaid tax.

Late payments are also expensive. You will not pay a penalty of ½ of 1% of your unpaid bills for each month or part of a month after the due date that the bills are not paid. This penalty can be as much as 25% of your unpaid bills. If both failure and default penalties apply in any month, the 5% failure penalty is reduced by the default penalty. For example, instead of a 5% monthly penalty, the IRS will apply a 4.5% penalty for failure to file and a 0.5% penalty for failure to file.

Adding an extension can help. If you file for an extension and pay at least 90% of your taxes by the tax deadline, you won’t have to pay a penalty for not paying the remaining balance as long as your taxes are paid in full by the extended deadline.

Tell the IRS why you’re late. If you have a really good excuse for not being able to file or pay by tax deadline, you may not need to face failure or nonpayment penalties. So if you can show that you failed to file or pay on time for a reasonable reason rather than willful neglect, let the IRS know.

So even if you can’t pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options.

Full Service Guarantee Still Smaart Company Accounting, Tax, & Insurance Services Smaart Company Accounting, Tax, & Insurance Services

We will complete your payments
And find every dollar
you deserve

When your full service expert completes your bills,
They only sign and file when they know it’s 100% correct
And you will get the best result, guaranteed.