Talk:Late Filing Penalty
From TaxAlmanac
If an individual or a corporation files an extension for their tax return, but later files the return after the extension due date, and has a balance of tax due, does the late filing penalty start from the original due date of the return or does it start from the date of the extension?
Per IRS Publication 17, Page 21, the Federal late filing penalty is calculated as follows:
Filing late: If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. The penalty for Federal is usually 5% for each month or part of a month that a return is late, but not more than 25%. The penalty is based on the tax not paid by the due date (without regard to extensions).
Combined penalties: If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $100 or 100% of the unpaid tax.
Tax Almanac Team Jen 09:13, 7 Jun 2005 (CDT)
