If you file your taxes late in the U.S., you may face two primary penalties: the late filing penalty and the late payment penalty.
Late Filing Penalty
– The penalty for not filing your tax return on time is 5% of the unpaid taxes for each month or part of a month that your return is late, up to a maximum of 25% of the unpaid taxes[1][2][3][5].
– If your return is more than 60 days late, the minimum penalty is $485 or 100% of the unpaid tax, whichever is less[2][3].
Late Payment Penalty
– The penalty for not paying your taxes on time is 0.5% of the unpaid taxes for each month or part of a month that the taxes remain unpaid, up to a maximum of 25% of the unpaid taxes[1][2][3].
– If both the late filing and late payment penalties apply in the same month, the combined penalty is capped at 5% per month, with the late filing penalty reduced by the amount of the late payment penalty[1][2][4].
Additional Considerations
– Interest on unpaid taxes will also accrue from the original due date of the return until the taxes are paid in full[3].
– If you are due a refund, there is no penalty for filing late, but you must file within three years to claim your refund[2][3].
– Filing for an extension can give you more time to file your return but does not extend the time to pay any taxes owed[3].
Penalty Relief
– In some cases, you may be eligible for penalty relief if you have a reasonable cause for filing late or if it is your first time missing the deadline[2].
Filing and paying as soon as possible after missing the deadline can help minimize these penalties and interest charges.