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What Are the Consequences for Filing a Late Tax Return?

What Are the Consequences for Filing a Late Tax Return?

By on Mar 17, 2016 in Filing Taxes, Tax Refund, Tax Tips, Taxes | 0 comments

taxesThe short answer: money!

The consequences of filing a late tax filing could very well cost you money. So it’s important to make sure that you are aware of the tax deadlines. It is equally important that you make the necessary preparations needed in order to file your annual taxes in a timely manner. All too often, not having the required documentation or information will inevitably cause delays that can possibly result in a late filing. If for any reason, your filing is late, penalties will occur.

Delaying Your Potential Return

There are two types of failure penalties: failure-to-file and failure-to-pay.

The failure-to-file penalty is usually more than the failure-to-pay penalty. If for some reason, you are not able to pay the full amount of taxes owed, it is recommended to still file your annual taxes before the deadline and pay as much as you can afford. Then call the Internal Revenue Service (IRS) to discuss possible payment options. The IRS will be more than happy to work with you.

Type of Late Penalties

Failure to File

The penalty for a late tax filing is approximately 5% of your unpaid taxes for each month that it is late. The failure to file penalty will not be more than 25% of your unpaid taxes. According to the IRS, if you submit your filing60 days after the deadline or the extended due date, the minimum penalty is the lesser amount of $135 or 100% of the unpaid tax.

Failure to Pay

If you neglect to pay your taxes before the deadline, you will be charged a failure-to-pay penalty of ½ of 1% of your unpaid taxes for each month after the deadline that the taxes aren’t paid. This penalty can cost up to 25% of your unpaid taxes.

If both the failure-to-file penalty and the failure-to-pay penalty apply in the same month, the 5% failure-to-file penalty will then be reduced by the failure-to-pay penalty. If you submit your filing 60 days after the deadline or extended due date, then the lesser penalty of $135 or 100% of the unpaid tax will be due.


You won’t have to pay a failure-to-file or failure-to-pay penalty IF you can prove that the reason you didn’t file or pay your taxes on time is due to a reasonable cause and not fromblatant neglect.

Know More About Your Rights

When it comes to tax matters, there are complicated rules, and not so complicated rules. This all depends on the individual taxpayer and is assessed on a case-by-case basis. As a result, there is no one set way to resolve tax issues. One thing is consistent, and that’s the deadline. It is your responsibility to meet those deadlines, and if for some reason you aren’t able to, then you must communicate this to the IRS.

If you think that you might be late with your tax filing and feel that you could use some assistance in informing the IRS about this, contact the experienced professionals at Success Tax Relief online or call 877-825-1179 today.

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