7 Facts Should Know about IRS Late Filing and Late Payments Penalties

The annual deadline for the people to file their federal income tax return is 15^th April. This is also the deadline for people to pay any taxes that they might owe. As per law, there is an IRS late filing penalty that the IRS can assess to the taxpayers. This means that the penalty is also assessed on the taxpayers who fail to pay the taxes that they owe within remaining deadline. These penalties levied by the IRS are called 1099 form penalties and there are some important facts about these penalties. 

 Major Facts about Late Filling and Payments Penalties

1. Failure to file the late payment penalty might apply if you do not file within the deadline of tax filing. Failure to pay penalty might apply in case you do not pay all the taxes that you owe within the deadline for tax filing.
2. Failure to file penalty is something more than just failure to file penalty. One should file his or her tax return within deadline each year even if he or she does not have the ability to pay the entire tax amount owed within the due date. This helps in reducing the additional penalty for paying taxes late and interest on tax returns. It is also important to have an idea of other options of payment like installment agreements and loans for making the payments.
3. The penalty for late taxes is generally 5% of the unpaid taxes for each month or part of the month for which the payment is late. This penalty accrues right from the day post the due date of tax filing. It does not exceed 25% of the unpaid taxes.
4. In case you fail to pay taxes within the tax deadline, you will normally face IRS late payment penalty of ½ of 1% of the unpaid taxes. This penalty applies to part of a month or each month post due date and accrues from the day post the due date of tax filing.
5. You might not face a penalty for filing taxes late if you have requested for the time extension for filing your income tax return and made the payment of minimum 90% of your owed taxes within the time remaining. However, it is important for you to pay remaining balance within the time extension granted.
6. In case you file your tax return more than 60 days post the extended due date or the due date, the minimum penalty filing taxes late is less than 100% or $135 of unpaid taxes.
7. If you are able to show certain reasonable causes behind not being able to pay the taxes or efile the tax returns on time, you might not have to pay such penalties.