If you are going to be filing taxes late, you may want to rethink doing so as you may be on the hook for a penalty.
Here are nine things you need to know if you don’t file your taxes by Tax Day, which is April 15:
- You will receive no penalty if you file by October 15, 2019 if you file an extension and paid your tax bill by April 15, 2019.
- There is no penalty if you’re getting a tax refund, although you need to file by April 15, 2022, or any unclaimed tax refunds are sent to the U.S. Treasury.
- If you owe taxes and didn’t file your return or extension by April 15, 2019, or if you filed an extension but didn’t file your return by October 15, 2019, you will be penalized.
- In this case, there’s a 5% late filing penalty of the additional taxes owed amount for every month your return is late, up to a maximum of 25%.
- Filing your taxes late can hurt you in other ways as if you file more than 60 days after the due date, the minimum penalty is $205 or 100% of your unpaid tax, whichever is less.
- There are penalties if you didn’t pay taxes owed by April 15, 2019, regardless of whether you filed to extend the deadline or not.
- In this case, it’s a late payment penalty of 0.5% of the additional tax owed amount for every month the owed tax is unpaid, up to a maximum of 25%.
- For any month or months in which the late payment and late filing penalties are in place, the 0.5% late payment penalty is waived.
- Interest will also compound daily on unpaid taxes one day after the due date until the bill is fully paid off, with the current interest rate at 5% and is subject to change.
