Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about IRS Tax Penalties and other Tax Relief topics.
Otherwise known as a ‘failure to file' penalty, you will be assessed this tax penalty whenever you fail to file your income tax return by the due date. The penalty amount, in general, is 5% of the total tax amount not paid by the due date. Extension dates are not taken into consideration. It is from the original due date of your income tax return (usually April 15).
This penalty accumulates and is applied for each month, or part of the month, that your income tax return is late. It cannot exceed 25%.
However, if you file your income tax return late due to fraudulent reasons, there is a 15% penalty for each month, or partial month, that your return is late. The maximum penalty is 75%.
|Sheri Ann Richerson|