If you do not file your federal income tax on time and are due a refund, there is no penalty assessed by the IRS. However, if you do owe taxes and file late, it is to your advantage to file as promptly as possible. The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%. If you file more than 60 days after the due date, the minimum penalty is $135 or 100% of your unpaid tax, whichever is smaller.
Your Money Wiz
Davis Financial Services brings to life the long-time dream of its founder, Patricia A. Davis. The dream: Improve the lives and finances of everyday people by expanding their knowledge and understanding of important financial matters. Davis Financial Services offers public and private sector organizations and individuals a full curriculum of innovative, well-researched education programs designed to explain, clarify, and demystify financial subjects. Since inception, DFS has helped thousands of individuals to secure a better financial future.