What is the penalty for filing late?

If you have taxes owed, filed for an extension and do not file your tax return on or before October 15, 2024 you will have a failure to file penalty and a failure to pay penalty.

 

Go to this IRS website for the failure to file penalty - https://www.irs.gov/payments/failure-to-file-penalty

 

Go to this IRS website for the failure to pay penalty - https://www.irs.gov/payments/failure-to-pay-penalty

 

If you are filing the 2023 tax return with a tax refund there are no penalties for filing the 2023 tax return after the due date.

There are 2 possible penalties when filing a tax return late.

 

Late File Penalty: 

• The Failure to File penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.

Failure to Pay Penalty

• If you file a return but don't pay all tax owed on time, you'll generally have to pay a late payment penalty. The failure-to-pay penalty is one-half of one percent for each month, or part of a month, up to a maximum of 25%, of the amount of tax that remains unpaid from the due date of the return until the tax is paid in full.

If your return is over 60 days late, there's also a minimum penalty for late filing; it's the lesser of $485 (for tax returns required to be filed in 2024) or 100 percent of the tax owed.

 

If you do not pay taxes on time:

• Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full. The interest rate is determined quarterly and is the federal short-term rate plus 3 percent. Interest compounds daily. 

 

If you don't owe any taxes there is no penalty

 

 

https://www.irs.gov/payments/failure-to-file-penalty

https://www.irs.gov/taxtopics/tc653

 

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