Thursday, April 18, 2013

Late Filing of 1040 | Late Payment Penalties for 1040

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April 15 is the annual deadline for most individuals to file their federal revenue enhancement return and pay any taxes they owe. By law, the government agency may assess penalties to taxpayers for both failing to file a official document and for failing to pay taxes they owe by the deadline.

Here square measure eight small print regarding penalties for filing or paying late.

1. A failure-to-file penalty may apply if you probably did not file by the tax filing deadline. A failure-to-pay penalty may apply if you probably did not pay all of the taxes you owe by the tax filing deadline.

2. The failure-to-file penalty is mostly quite the failure-to-pay penalty. you should file your official document on time every year, though you’re not capable to pay all the taxes you owe by the day of the month. you'll scale back extra interest and penalties by paying as much as you'll together with your official document. you should  explore alternative payment choices like getting a loan or creating an installment agreement to make payments. The government agency can work with you.

3. The penalty for filing late is generally 5 % of the unpaid taxes for every month or a part of a month that a official document is late. That penalty starts accruing the day once the tax filing day of the month and will not exceed 25 % of your unpaid taxes.

4. If you do not pay your taxes by the tax deadline, you commonly can face a failure-to-pay penalty of ½ of one % of your unpaid taxes. That penalty applies for every month or a part of a month once the day of the month and starts accruing the day once the tax-filing day of the month.

5. If you timely requested an extension of time to file your individual revenue enhancement return and paid a minimum of 90 % of the taxes you owe together with your request, you'll not face a failure-to-pay penalty. However, you need to pay any remaining balance by the extended day of the month.

6. If both the 5 % failure-to-file penalty and also the ½ % failure-to-pay penalties apply in any month, the utmost penalty that you’ll purchase both is 5 %.

7. If you file your return quite 60 days once the day of the month or extended day of the month, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.

8. you may not need to pay a late-filing or late-payment penalty if you'll show reasonable cause for not filing or paying on time.