What is the penalty if I do not file my tax return by the due date?

If you haven’t filed your 2022 tax returns yet, keep in mind that the deadline to do so is approaching. Taxpayers have up to tuesday april 18 to present them. Additionally, people can also request more time to file their taxes by filling out a form that will give them a deadline. October 16.

However, you should keep in mind that if you do not file your taxes by the deadline, you will be assessed a penalty equal to a percentage of the taxes you have not paid on time.

How to know what you owe the fine

The IRS will send you a notice or letter if you owe the penalty for not filing your tax return. The letter or notice will explain the reason for the communication and provide instructions on how to handle the matter. For more information you can consult the agency’s section “How to understand your letter or notice from the IRS”.

How the IRS Calculates a Penalty

The agency calculates the penalty for failing to file a tax return based on the time it takes to file your tax return and the amount of unpaid taxes as of the initial payment due date (not the due date). extension deadline). Unpaid tax is the total tax that should appear on your return less amounts paid by withholding tax, estimated tax payments, and any allowable refundable credits.

Here the process:

• The penalty for failing to file a tax return is 5% of unpaid taxes for each month or part of a month that you are late in filing your tax return. The penalty will not exceed 25% of your unpaid taxes.
• If the penalty for failure to file the income tax return and the penalty for failure to pay apply in the same month, the penalty for failure to file the income tax return is reduced by the amount of the penalty for failure to pay for that month, by a combined penalty of 5% for each month or part of a month that your return was filed late.
• If after five months you still have not paid, the penalty for failure to report will reach the maximum amount, but the penalty for failure to pay will continue until you pay the tax, up to a maximum of 25% of the fee unpaid on the expiration date.
• If you were more than 60 days late in filing your return, the minimum non-filing penalty will be $435 (for tax returns due in 2020, 2021, and 2022) or 100% of the tax owing . return, whichever is less.

Interest on the fine

The IRS charges interest on penalties. The date from which interest begins to be charged varies depending on the type of fine. Interest increases the amount of debt until the person pays the balance in full.

How can I pay a fine?

You can send a payment or pay in full to avoid future penalties and interest. Click here.

Do you need more time to pay the fine?

This one is for individuals and businesses: request a payment plan (including an installment plan) online to pay off your balance over time. Charges apply.

How to remove or reduce a fine

Penalties may be waived or reduced if the person acted in good faith and can show reasonable cause for non-compliance with tax obligations. By law, they cannot eliminate or reduce interest unless the penalty is eliminated or reduced.

For more information, see Fine Relief.

How to dispute a ticket

If you disagree with the amount you owe, you can dispute the penalty.

You can call the toll-free number in the upper right corner of the notice or letter or (833-553-9895), or write a letter stating why we should reconsider the ticket. Sign and mail the letter with supporting documents to the address listed on the notice or letter.

Please have the following information ready when you call or send your letter:

• The notice or letter they sent you.
• The fine you want them to reconsider.
• For each ticket, an explanation of why you think it should be deleted.

How to avoid a fine

You can avoid a penalty if you file and pay your taxes by the due date. If you can’t, you can request an extension of time to file your tax return or a payment plan.

We have spoken with the IRS to request an extension of the tax filing deadline. An extension is for the deposit, not for paying. If you owe taxes, you must make that payment by April 18.