October 15 is just around the corner and if you filed an extension on your 2019 tax return, and you don’t file your return by October 15, the penalty is quickly going to skyrocket to 25 percent of the unpaid taxes.
If a return is filed more than 60 days after the deadline, it is subject to a minimum late filing penalty that is the lesser of either 100 percent of the tax required to be shown on the return that was not paid on time, or a specific dollar amount that has been adjusted for inflation ($210 for returns due after 1/1/2018).
The penalty applies for a full month, even if it is less than 30 days late. The penalty begins accruing the day after returns are due – up to a maximum of 25 percent of your unpaid taxes.
The failure to pay penalty is 0.5 percent of the taxes not paid.
The penalty is weighed each month after the due date until the bill is paid or the levy reaches 25 percent of unpaid taxes.
This means non-filing and non-payment penalties can quickly go to 50% of the tax owed!
Certain taxpayers may be eligible to extend deadlines – including those on military duty and those in a declared disaster area.
If you are unable to make your tax payments, immediately contact Elite Tax Defense at: 833-660-1159.
Elite Tax Defense will work with the IRS to put you into the most favorable position possible, which could include setting up a minimal amount installment agreement, or settling your tax bill for less, through an offer in compromise.