Penalties for Filing or Paying Taxes Late
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- Опубликовано: 13 фев 2020
- This video will go over the types of penalties for not filing on time or paying your taxes on time.
The 2019 filing deadline for individual income tax returns is April 15, 2020. If you file an extension, you have till October 15, 2020, to file your tax return.
This video into separated into two sections: Late Filing Penalties and Late Payment Penalties.
1. Late Filing Penalties
If you don’t file your tax return or an extension on time, you may owe a penalty for late filing. If you’re due a tax refund, you will not be penalized for filing late because ate filing penalty is based on how much in taxes you owe.
The late filing penalty is 5% of the taxes due for every month your return is filed late, up to a maximum of 25%. If you file more than 60 days after the due date, which would be Sunday, June 14, 2020, the minimum late filing penalty will be $330 or 100% of unpaid tax, the lesser of the two.
2. Late Payment Penalties
If you didn’t pay all taxes due for 2019 by April 15, 2020, regardless of if you filed an extension, you will owe a late payment penalty.
The late payment penalty is half a percent of the additional tax owed for every month the owed tax remains unpaid, up to a maximum of 25%. For any month for which both the late payment and late filing penalty apply, the 0.5% late payment penalty is waived. Interest, compounded daily, starts accumulating on unpaid taxes one day after the original due date of the tax return, April 15, until the bill is fully paid off. The current interest rate is 5% (3% on top of the federal short term rate of 2%).
To help you calculate your estimated tax penalty click here:
www.irscalculators.com/irs-pe...
Music: RUclips Audio Library - Carefree by Kevin MacLeod
Email: slee@whiteoakcpa.com
This video is for entertainment and informational purposes only and should not be considered tax advice. By watching or commenting on this video, we are not forming a professional relationship. If you seek specific tax advice, please consult a CPA from your local area.
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This made paying taxes a lot less scary than I previously thought, I really thought I’d just get jail time
🤣
Bro wattttt me as wellll 😅😅
IRS is 💩
Thank you for this info. I've been getting anxious about being late. At least now there's some clarity.
This essay very helpful and thank you! I owe the 11 grand but made arrangements and already started paying
I used a CPA to help me, and he requested under IRS's first-time abatement relief. I have been on time paying for many years. However, after I retired from the US Army with over 20-years of service, life took a turn. The abatement was denied, and I paid total of approximately $108,000 for tax year 2021 that included late penalties and accrued interests. Luckily I was able to login to my IRS online account where I saw balance plus accruing interest. I paid in FULL. I hope this is the last of it so I can enjoy my retirement from the U.S. Army. Wished I saw this video. Thank you for your informational video.
This was so helpful thanks!
So I've never owed money to the irs when filing. I submitted my 2019 return, but I haven't done 2018. So if they owe me money for the 2018 taxes, then I won't have a penalty?
Great information. Very well explained
So if you miss file your tax or extension on time, what you will do? Fill it up normally then you will paid for penalties and interests?
Hello I have a quick question I’m in California. When is the cut of time to collect tax holders? Does it start January and end tomorrow in Nov and than we can file taxes until January or December?
I’m trying to calculate how if I have money to file for irs or if I have to work before the cut off time
Hey I have a question.
So I did my taxes on Feb and I owe IRS 373, but this is before the unemployment tax break. Now, I didn't pay that yet, which is due by the 17th of May. If I am to recieve the unemployment tax break(mines is at 22%), then do I still need to pay the 373 by May 17th, or do I just not pay and will they automatically deduct from my refund??
Thanks for that explanation! So for example, if I owed $5000 per quarter (both Federal and State) in estimated tax payments, but I didn't pay the Q1 taxes until 3 months later on Q2 (June 15th), would I owe $750, plus interest, in penalties for missing Q1 estimated tax payment? (5% X $5000 X 3 months late)
Can you still file taxes from 2018 this year?
I stopped doing my business in 2020 but in 2021 I didn't pay my annual report... I attempted to close the business but apparently I didn't do it right , so I submitted all the tax filings which were 0 for all but not I'm wondering should I file to close the business or should I pay the annual report fee and then close it ? Also how screwed am I ?
What if you only did self employment for a 1.5 and now you go back to w2 do you still need to keep paying self employed taxes ?
quick question: what if I submit an amendment return in September 20, 2023 for tax year 2021 and the amendment generated a tax liability of $255. how much penalties and interest will it generate and can I add the penalties and interest to the amended return so the tax payer is aware of the total tax implication right away instead of having to wait for an IRS notice? Thanks in advance
Dam, GREAT GREAT Info!!
Appreciate it!
Hello, we filed our 2012 LLC tax return in 2015, we received a letter in 2018 indicating we owed late penalties. We consulted a tax attorney in 2018 and he advised since the business had been dissolved in 2016, the penalties would be forgiven! So now we get this letter last week indicating over $6000 penalty bill. Is there anything that can be done? This amount is penallties only! Please advise.
can you have federal tax taken out of your check but not show up on your w2 at the end of the year
if I owe 80k but pay 4 months late, what would my late fees accumulate to?
So if I'm making over 53.4% on my money over 5 years. Is it a good idea to pay 5 years late?
at 2 min 36 sec , he says "the minimum"; he means to say "the maximum"
Na, it's the minimum late filing penalty, he had it right.
I started my business September 22nd and get business until Jan 4 2022 so I didn’t make any money in 2021 so what would my late filling be fee and I’m a partner ship
What if I paid two months late and filed the return five months late from due date?
Hi Stephen, I hope you can help me. I contracted a company to fill out my tax return in 2020. They fill out my tax return, and I pay the amount they asked me to pay to IRS. However the end of last year, I was negotiating with IRS for my tax return from 2021, and IRS told me that they could see that I paid "x" amount, but they never received my tax return from 2020. Can I make this company accountable for its mistake?
What if you file on time but don't have the money You owe?
Hi Stephan. Thanks for the video. Im a bit confused though. The late filing penalty in the first case (over 6 months late) seems to be higher (USD 330 or total tax due) than the late filing penalty if the taxes were not paid for 5 years (25% of amount owed ie. $250) . Am I missing something?
I think you're right, the penalty should've been the lesser of $330 or $1,000 in that example, since the return was filed more than 60 days late. Nice catch!!
@@PracticalPersonalFinance I have no sale yet, but i have one moth late after notice period to file my return in florida do I have panelty form IRS?
@@PracticalPersonalFinance can You guide me ? I have no sale , I just penalty in penalty column and submit then where we pay penality online in florida state give me link
I used turbo tax, and I have it where it takes it from my refund. I select that every damn year. Since the government haven’t payed me yet. It took my whole damn refund. That’s not my fault.
To avoid the penalties, safe harboring, is the 110% due by the end of December of the tax year, or 15 January of the following year?
hey guys, what does it mean? when a local government entity threatens to attach a lien for a statutory penalty to business personal property. The business is already closed but was a sole proprietorship.
Thank you for the comment and question. Unfortunately the question is a legal question, I am not sure what the answer would be.
I already forgot to pay the first two estimated taxes for Tax Year 2021 (I filed for an extension but forgot to pay estimated taxes). Can I make up for it by including the first three quarters' estimated taxes together before September 15th? Or a penalty is unavoidable now?
The penalties are unavoidable but I would make a catch up payment to reduce any future penalties from accruing.
Iam working self-employed but I didn't pay or file any taxes since 4 years ago can I do it now and what going to happen
What if you just pay your max penalties, and not your taxes are they just gonna start your penalties again. I mean the penalties are cheaper then the taxes?
Can you calculate mine, please. If I owe 30k on taxes 2021, i filed for extension but did not pay any taxes for that year. How much will I be paying if
i do a monthly
payment. Now its’s 2023 how much do you think it will be, estimate? Thanks in advance! 😵💫
It’s the year 2023 why are we talking about 2019 if somebody files for 2019 right now of course they’re gonna be late like four years late
Everything made sense except how you were calculating the interest on the penalties. The math didn't seem correct.
How can I get in contact with you so you can do my taxes since your in Chicago
How can you tell what you owe? Like the IRS receives all these tax documents, but we are still required to file. So if we miss something, can the interest end up being compounded for years and years without us knowing? Is there a way to ask the IRS "Hey do I owe anything"? lol
Great question. Yes there is, you can request your account transcript to see if you owe any taxes to the IRS via the following link: www.irs.gov/payments/view-your-tax-account
@@locumcpa Ahh awesome, thanks! Seems like if you click "Create/View your account" in that link you sent it tells you if you owe. For me 2016-2020 shows all zeros, im good!
So will $500 turn to $500,000 if not paid??
What if the company you work for doesn’t send your w-2 on time even after asking for it ? .......
Great question Joshua. You still have to report the income based on your last paystub.
What if your own a refund?
I was literally 57 minutes late, but it’s now pending. Now what? Didn’t realize the last day was today (I was told the last day was the 15th). Do I still have to contact the IRS and get an extension? And what if I don’t get an extension but it goes through, will I have to pay 5% penalties/late fees?
I’m so pissed...
If I were in your shoes, I would simply file and pay as soon as possible. You're going to get hit with the late filing penalty if you owe, but as long as you don't let it go past 60 days, the penalty should not be too bad. Since this video was made, the late filing penalty actually went up quite a bit to $435 instead of the $330 that Steve mentioned thanks to the SECURE Act at the end of 2019. But if you're due a refund, don't worry, you won't have to worry about any penalties.
@@PracticalPersonalFinance
Does that late fee apply after you go past the 60 day mark? Or is that as soon as you’re late? Cause I know the cap is 25% but that’s only if you let it go 5 months without paying. Are the penalty fees still the same? If so, then being late is an automatic 5%, plus the penalty, which means I’ll owe between $50-?55 (maybe $60), am I right?
Also, when you’re late, they’ll send you something in mail letting you know you owe, am I correct?
Ugh, being an American citizen is great...😂😭
What’s the law requiring an American Citizen to file a 1040 Form?
Great question. Here's a great IRS tool to provide guidance for your specific situation: www.irs.gov/help/ita/do-i-need-to-file-a-tax-return
I owe $9k and am 7 months late on filing and paying now. Any idea on how much I would be charged in late and penalty fees if i were to file and setup a payment plan within the next week?
I would just use his example in scenario 3 and multiply his numbers by 9. You would be paying slightly less than that number, I would assume
how about if you are a year late
The penalties and interest will be based on the tax amount owed and how longs its been outstanding.
$334 interest ? Over 5 years ? 5% daily compounded? How does that math work ?
how dare they charge us INTEREST on TAXED MONEY?!?!
What happens if you file on time but pay a couple days late
There still may be penalties for late payment.
Thanks for the video. What happen if I file my tax on time but only able to pay $500 of $1000 owe by April 15 and the remaining $500 1.5 month later?
@@ShineVanguard168 I believe it would be 0.5% per month (or fraction of a month) on the unpaid tax. So in your case, $500 x 0.5% x 2 months = $5 penalty + a dollar or two of interest.
Will I have a penalty for paying a week late ?
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