@Mike9241 wrote:
if you did not file a valid extension by now you have incurred a (5% a month for a maximum of 5 months) 25% IRS penalty for late filing (failure-to--file-penalty) + interest this is in addition to the late payment penalties and interest, so it behooves you that pay ASAP. States also have late filing and payment penalties. these penalties are generally figured on the balance due. Technically, the IRS late payment penalty of .5% a month doesn't start until the after the late-filing period ends
We should clarify there are two "costs" involved.
1. Late filing. If you owe taxes, file late, and did not get an extension, the late filing penalty is 5% per month of the amount you owe, for the first 5 months, and the 0.5% of the amount you owe after that.
2. Late payment. If you owe taxes and pay after the April 15 deadline, you will be assessed a late payment penalty of 0.5% per month plus interest at about 8% APR, except that the 0.5% late payment penalty will not be assessed in a month where you are also assessed the full 5% late filing penalty. The interest is back-calculated to April 15 even if you did have an extension of the filing deadline.
So if you didn't get an extension, you will likely be billed for about 30% extra in penalties and interest at this point, plus a further 1% per month (approximately) going forward until you are paid off. If you did get an extension, you are likely to be billed for about 1% per month (combined interest and penalty) of the amount due, backdated to April 15, until you pay it off.
