Fall 2014 Newsletter: Beware emails from the “IRS.” Update_Fall2014.pdf

Summer 2014 Newsletter: Prepare for the Medicare surtax in your 2014 planning. Update-Summer2014.pdf

Winter 2013 CLIENT UPDATE Newsletter: Heath-care reform law gets underway for individuals. Update-Winter2013.pdf.

Fall 2013 CLIENT UPDATE Newsletter: Do you have obsolete inventory? Update-Fall2013.pdf.

Spring 2013 CLIENT UPDATE Newsletter: Tax legislation effects: Update-Spring2013.pdf.

Winter 2012 CLIENT UPDATE Newsletter: Year-end checklist for taxes: Update-Winter2012.pdf.

Fall 2012 CLIENT UPDATE Newsletter: Supreme Court upholds 2010 health care law: Update-Fall2012.pdf.

Summer 2012 CLIENT UPDATE Newsletter: Diversify investments by focusing on taxes: Update-Summer2012.pdf.

Spring 2012 CLIENT UPDATE Newsletter: 12 ways to improve your financial health in 2012: Update-Spring2012.pdf.

Winter 2011 CLIENT UPDATE Newsletter: Tax rules can provide relief when disaster strikes.  Update-Winter2011.pdf.

Fall 2011 CLIENT UPDATE Newsletter: New bonus depreciation rules.  UpdateFall2011.pdf.

Spring 2011 CLIENT UPDATE Newsletter: New tax rules offer opportunities. Are you saving enough?UpdateSpr2011.pdf.

Winter 2010 CLIENT UPDATE Newsletter: Small Business Jobs Act restores familiar tax breaks. UpdateWinter10.pdf.

Fall 2010 CLIENT UPDATE Newsletter: New 2010 tax credit available to small businesses.  ClientUpdateFall10.pdf.

Summer 2010 CLIENT UPDATE: Health care reform includes current and future tax changes.  ClientUpdate.pdf.

March 2015

What are the penalties for filing my income tax return late and paying the tax owed late?

If you miss the April 15 filing deadline and you are due a refund, there is no penalty for filing a late tax return. But, if you owe taxes and you fail to file and pay timely, you will typically owe interest and penalties on the late taxes. There are seven facts you should know about these penalties:

1.     If you file late and owe federal income taxes, you may incur a failure-to-file penalty for late filing and a failure-to-pay penalty for paying late.

2.      The failure-to-file penalty is usually 10 times more than the failure-to-pay penalty, so if you can’t pay what you owe by the due date, you should still file your tax return timely and pay what you can. .

3.     The failure-to-file penalty is normally 5% of the unpaid taxes for each month a tax return is late, not to exceed 25% of your unpaid taxes.

4.     There is a minimum penalty of the smaller of $135 or 100% of the unpaid tax if you file your return more than 60 days past the due date (or extended due date).

5.     The failure-to-pay penalty is typically 0.5% per month of your unpaid taxes and applies to each month your taxes remain unpaid and starts accruing the day after taxes are due. The maximum penalty can reach 25% of your unpaid taxes.

6.     If the 5% failure-to-file penalty and the 0.5% failure-to-pay penalty both apply in any month, the maximum penalty amount charged for that month is 5%.

7.     If you filed an extension by the due date of your tax return and paid at least 90% of the taxes you owe, you may not have a failure-to-pay penalty. However, you will still owe interest on any taxes you pay after the April 15th filing date.



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