![]() The interest and penalties will seem like nothing compared to the late filing penalties. To be perfectly clear, a tax extension gives you more time to file your return, but not to pay your taxes.įile even if you don't have the money The final point I'd like to emphasize is that you should always file your return on time, or request an extension, even if you don't have the money to pay. ![]() ![]() In the previous example of a $1,000 balance that's a year late, you would owe $30 in interest and $60 in penalties, unless you get it waived. Unlike interest, the late payment penalty can be waived if you can show good cause for not paying on time. The late payment penalty is assessed in addition to interest and is 0.5% of any unpaid tax for each month or partial month it remains unpaid, up to a maximum of 25%. The 2022 tax deadline is April 18, barring any circumstances that would require the IRS to push the deadline back. The IRS extended the tax-filing deadline in 20. So, if you owe $1,000 and pay a year after the deadline, you'll owe $30 in interest. Your extension must be postmarked on or before the April 15 deadline if you mail it rather than electronically file the form with tax preparation software. The IRS's interest rate can vary, and is 3% for underpayments as of the first quarter of 2016. You will owe interest on any tax not paid by the normal due date, even if you have a legitimate reason for not paying on time - such as being out of the country or some other hardship.
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