Filed Your Tax Return Late? What Penalties the IRS Might Assess

Filed Your Tax Return Late? What Penalties the IRS Might Assess

Welcome to tax te today I'm going to Talk about what happens when you don't File your tax return by the due date Your form 1040 individual tax return This year the due date was April 15th And that is a pretty usual uh due date For individual tax returns if the April 15th is on a holiday or weekend the Deadline gets pushed to the next Business day but this year the tax due Date was April 15th for those of you That completed your tax return by the Due date congrats to to you you know Another tax season in the books this Video is for those of you who haven't Had the chance to file your tax return By April 15th so your tax return right Now is late um I'm going talk about what You need to consider when you have a Late tax return you know what kind of Penalties you should expect from the IRS So let's get into it when you are filing A late tax return you're either Expecting to receive a refund from the IRS right or you're going to end up Owing taxes to the IRS if you're Expecting to receive a refund you're in A different scenario than if you are Someone who's expecting to owe taxes to The IRS the reason being is IRS Calculates penalties on a late filed Return based on the taxes that you owe The IRS and when you're in refund Position you don't owe any taxes IRS IRS

Owes you a refund in that case you know I would I were you try to file your tax Insur as soon as possible so you can get That refund as quick as possible use it For whatever you seem you seem deemed to Fit now if you're on the other Camp Right if you are someone who thinks that They will owe Taxes there's a little bit more thought You have to go through and Considerations you need to consider Which I'll go over now if you are filing Your tax return late and haven't paid Your taxes yet or expect to owe Additional taxes to the IRS there are Two common penalties that the IRS will Assess the first one is failure to file Your tax return on time tax return was Due April 15th and if you file it past That due date without an extension You're going to get hit with a failure To file penalty that penalty is 5% of The unpaid tax for every month that you Have not filed your tax return this Penalty can get as high as 25% so that's if you are someone who is Filing your tax return late try to get That done as soon as possible CU every Month that you have it outstanding You're curing penalties on that As well as interest the IRS will assess Interest on top of your penalties so try To get your tax return filed as soon as Possible because you're uring that 5%

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Every month on your unpaid taxes the Second penalty that the IRS will assess Is failure to pay Taxes if you filed your tax return late And you haven't paid the taxes that you Owe the IRS is going to assess one half Of 1% every month that you have not paid Your taxes so it's 1 half of 1% of the Unpaid taxes up to 25% it's worth noting That both these penalties are separate Let's say April 15th comes around you're Like oh shoot you know I for or April 16th come comes around you're like oh Shoot I forgot to file my tax return but I know how much money I think I'm going To owe the IRS you can send a payment to IRS an estimate payment and you could Stop the penalties for uring for your Failure year to file right because you Sent the money you know you're estimated How much taxes that you owe that might Stop that penalty if you give them a Decent estimate your failure to file Penalty will keep go keep going until You file your tax return but you know if You have an estimate of how much you Think you're going to ow in taxes you Could send that to the IRS to stop that Failure to pay penalty now the only way Like I mentioned the only way you can Stop your failure to file penalty is to File your tax insurance so try to get That done as soon as possible both Penalties I just mentioned are assuming

That the tax return is not fraudulent if You're acting in bad faith you know You're trying to avoid taxes in an Unethical manner the penalties can go a Lot higher than 25% I assume most of you are you know in Good faith you're just trying to get Your task return done with the Information you have and under those Facts and circumstances you know like I Said 25% Max for your failure to file in Combination with you know your failure To pay penalty um again the failure to File penalty is occurring at 5% of your Unpaid tax every month up to 25% and Then your failure to pay is 1 half of 1% Every month of your unpaid taxes and in Both scenarios you will recruit interest The IRS realizes that there might be Some circumstances that limit the Taxpayer's ability to file their tax Return on time if you meet certain you Know um extraordinary circumstances for Example natural disaster Maybe an Immediate family member passed away or You didn't get all the information that You needed on time due to some it's not Your fault is somebody else who didn't Provide you that information you can Attach a reasonable cause statement or Letter to your tax return explain to the IRS like hey this was out of my hands I Tried to get that tax return done um but You know there's just things I couldn't

Control where I was not unable to get The task return done by April 15th this Year the IR the IRS will look at this Letter and determine if it you know if That meets reasonable cause and they may Wave your penalties and interest Depending on if they think your you know Reasoning is um reasonable to prevent This kind of thing from you know filing Your tax return late next year I would Consider trying to file an extension Before the due date an extension is form 4868 it gives you another 6 months to File your tax return so you don't have To worry about that failure to file Penalty until October 15th this year if You would have applied the form 4868 Extension on your form 1040 um keep in mind that this does Extend your time to file your tax return But does not extend your time to pay April 15th you need to pay most your Taxes on the April 15th due date most or If not all your taxes just know that Next year if you want to avoid that Failure to file penalty consider filing An extension by that tax return due date To conclude the video video if you're Filing your tax return late and you are A taxpayer that is expecting to receive A refund you're in a pretty good spot Cuz the chance of you owing penalties is Minimal because IRS assesses penalties Based on the amount of taxes that you

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Owe the IRS and I would encourage you to Try to get your tax return done as soon As possible so you can receive that Refund and spend it on whatever you want On the other side of things if you're a Taxpayer that's fing your tax return Late and you're expecting to pay the IRS Additional taxes or pay them Taxes you know I would consider maybe Talking to a CPA or tax professional Just to help you out during this time it Could be nerve-wracking dealing with IRS Letters you know on penalties and Interests that you owe and it might be a Good idea to reach out to a CPA or a Taxk professional to help you through Those times I hope you found this video Helpful and informative if you enjoyed The video give it a like Um thank you all for watching and I'll See you all next video

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