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Monday March 25, 2019
IRS Offers Post Tax-Filing Deadline Tips
In IR-2018-102, the Service provided guidance for those taxpayers facing after-tax-day issues. The Service included tips for those who have not yet filed, have not paid their taxes or are awaiting their refunds.
For those who did not file by April 18, penalties and interest will not apply if a refund is due. Penalties and interest may apply, however, if taxpayers owe taxes and did not file a tax return by April 18. As such, the Service urges taxpayers who have not filed and owe taxes to file a return as soon as possible in order to reduce penalties and interest. Those who qualify may use "IRS Free File" on IRS.gov through October 15 to prepare and file their returns.
The Service explains that the late filing penalty on unpaid taxes, also known as the failure-to-file penalty, is usually 5% of the unpaid balance for each month, or part of each month, that the return is late. If a return is more than 60 days late, then the minimum penalty is the lesser of $210 or 100% of the unpaid taxes.
In some instances, taxpayers may qualify for penalty relief. If the taxpayer has a legitimate reason for filing late, he or she should attach an explanation to the return. Additionally, if a taxpayer has not been assessed a penalty for the past three years, he or she may qualify for penalty relief. For more information, visit the first time penalty abatement page on IRS.gov.
The Service also provided tips for the following issues:
Published April 27, 2018