Information from IRS.gov

The deadline for filing your Form 1040 personal income tax return and paying any tax owed was April 18. If you file late and have tax due, you will have penalty. However, if you are due a refund and file late there is not a penalty.

If you owe tax, and failed to file and pay on time, then you will most likely owe interest and penalties on the tax that you pay late. To keep interest and penalties to a minimum,  file your tax return and pay any tax owed as soon as possible.

The IRS offers these facts:

  1. Two penalties may apply. One penalty is for filing late and one is for paying late.  Interest accrues on top of penalties.
  2. Penalty for late filing. If you file your 2016 tax return more than 60 days after the due date or extended due date, the minimum penalty is $205 or, if they owe less than $205, 100 percent of the unpaid tax. Otherwise, the penalty can be as much as 5 percent of their unpaid taxes each month up to a maximum of 25 percent.
  3. Penalty for late payment. The penalty is generally 0.5 percent of taxpayers’ unpaid taxes per month. It can build up to as much as 25 percent of their unpaid taxes.
  4. Combined penalty per month. If both the late filing and late payment penalties apply, the maximum amount charged for the two penalties is 5 percent per month.
  5. Taxpayers should file even if they can’t pay. Filing  and paying as soon as possible will keep interest and penalties to a minimum.
  6.  Payment options. For individuals, IRS Direct Pay is a fast and free way to pay directly from a checking or savings account. The IRS will work with you to help resolve tax debt. Many people can set up a payment plan.
  7. Late payment penalty may not apply. If you filed an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes owed, then you may not face a failure-to-pay penalty. Interest will be owed on any taxes paid after the April 18.
  8. No penalty if reasonable cause.  If you can show reasonable cause for not filing or paying on time you may not be penalized.

Give us a call for more information or visit irs.gov.