If you fail to file your tax return and that tax return has tax that is due, the IRS will actually issue a penalty against you. This penalty can apply to any type of tax return but is reserved for taxpayers who willfully neglect to file. This basically means if you have a very good reason for not being able to file your tax return, the IRS will forgive you.
What's It Going to Cost Me?
If you fail to file your tax return it will cost you 5% of the total amount of net tax due per month the return is late. Net tax due means the amount of tax that is due on your return minus any payments made on or before the tax return is supposed to be filed.
The minimum failure to file penalty the IRS can charge you is the lesser of $135 or 100% of the net tax amount that is due on your return. The maximum failure to file penalty the IRS can charge you is 25% of the net tax amount that is due on your return. …show more content…
Fraudulent Failure to File
If your return is determined to be a fraudulent return the penalty is much more severe. Each month you do not file your return due to fraud you will be charged a 15% penalty against the net tax due. The maximum penalty that can accrue overtime is 75% of the total net tax due. This type of penalty is usual given out to taxpayers that are not filing their return in an attempt to evade paying taxes.
When determining whether to apply the fraudulent failure to file penalty against a taxpayer the IRS will look for the following:
1. If the taxpayer cannot explain the reason for not filing their
What's It Going to Cost Me?
If you fail to file your tax return it will cost you 5% of the total amount of net tax due per month the return is late. Net tax due means the amount of tax that is due on your return minus any payments made on or before the tax return is supposed to be filed.
The minimum failure to file penalty the IRS can charge you is the lesser of $135 or 100% of the net tax amount that is due on your return. The maximum failure to file penalty the IRS can charge you is 25% of the net tax amount that is due on your return. …show more content…
Fraudulent Failure to File
If your return is determined to be a fraudulent return the penalty is much more severe. Each month you do not file your return due to fraud you will be charged a 15% penalty against the net tax due. The maximum penalty that can accrue overtime is 75% of the total net tax due. This type of penalty is usual given out to taxpayers that are not filing their return in an attempt to evade paying taxes.
When determining whether to apply the fraudulent failure to file penalty against a taxpayer the IRS will look for the following:
1. If the taxpayer cannot explain the reason for not filing their