A non-payment penalty is charged for not paying your taxes before the due date. The late penalty is 0.5% of the tax due after the due date; for each month or part of a month in which the tax remains unpaid, up to 25%. You won't have to pay the fine if you can show reasonable cause for not paying on time. If you don't pay your taxes, the IRS will penalize you based on how long your back taxes go unpaid.
The penalty will be a percentage of the taxes you didn't pay or didn't report on your return. The IRS charges 0.5% of your unpaid taxes for each month or part of a month that your taxes remain unpaid. The penalty for non-payment entails a maximum charge of 25% of your unpaid taxes. The covered period always begins with the original due date of the return and ends with the receipt of payment by the IRS.
We calculate the no-show penalty based on the delay with which you file your tax return and the amount of unpaid taxes as of the due date of the original payment (not the due date of the extension). Nor is there a statute of limitations for evaluating taxes, penalties and interest when a false tax return is filed. If you file your return on time but don't pay all of the amounts due on time, you will usually have to pay a late payment penalty of one or half of one percent (0.5%) of the actual tax due for each month, or part of a month, that the tax remains unpaid from the due date, until the tax is paid in full. Unpaid tax is the total tax that must appear on your return minus the amounts paid through withholding, estimated tax payments, and allowable refundable credits.
April 15 is usually the deadline for most people to file their individual income tax returns and pay any taxes due. The total penalties for filing taxes late are usually 5% of the tax due for each month, or part of a month, when your return is delayed by up to five months (25%). We may be able to eliminate or reduce some fines if you acted in good faith and we can demonstrate reasonable cause why you were unable to comply with your tax obligations. We have found that the IRS adjustment process takes 30 to 60 days from the time the reduction request is made.
If you owe taxes and don't file them on time, in accordance with IRS regulations, fines are imposed and added to your bill. Generally, the IRS does not reduce interest and interest continues to accrue until all applicable taxes, penalties and interest have been paid in full. The bank will return and dishonor an electronic payment or check and the amount will be declared unpaid. The IRS will require that penalties and interest be paid in full before making any reduction determination.
To request a reduction in the fine, write to the IRS office that issued the bill within the time set by the IRS.