Litchfield, NH Resident Looks for Advice
One of the most common penalties that taxpayers incur from the IRS is the failure-to-file penalty. If taxes, or an extension, are not filed by the tax deadline and there is money owed a penalty totaling 5% of the taxes owed from the return will accrue each month. This dollar amount is capped at 25% of the owed taxes and there is a minimum penalty for tax money paid within 60-days. Failure-to-pay is another common tax penalty that occurs if taxes are filed but owed money is not paid, or an extension filed, by the tax deadline. This penalty is 0.5% of the money owed, also capping at 25%. Regardless of being a day late or 30 days late, both the failure-to-file and failure-to-pay penalties will be charged for a full month minimum.
