IRS: Taxpayers Who Missed the April 15 Filing Deadline Have Options

The IRS has issued a release highlighting options for taxpayers who missed the April 15 filing deadline. Taxpayers with outstanding tax liability are currently charged an 8% interest, compounded daily. The late filing penalty itself is 5% per month and the late payment penalty is 0.5% per month. If a return is filed more than 60 days late, the minimum penalty is $485 or 100% of the unpaid tax (whichever is less). Taxpayers should file and pay as soon as possible (IRS Direct Pay is the fastest way to pay). It's also possible that taxpayers may qualify for penalty relief if they have filed and paid on time for the past three years (and haven't been assessed a penalty during that period). Taxpayers who do not qualify for relief may still qualify for penalty relief if the failure was due to reasonable cause rather than willful neglect. Interest, however, will continue to accrue until the balance is paid in full and there is no option for interest abatement. Taxpayers who are unable to pay a balance owed have options for entering an installment payment plan with the IRS. For more information on the federal tax filing requirements, visit Tax Facts Online. Read More: Q647.