Late taxpayers must file a tax return as soon as possible, otherwise the amount owed penalties and interest will grow, warns the IRS (IRS). Penalties and interest apply to taxes due after July 15, reminiscent of Fox Business.
This year the deadline for payment of taxes was extended from April 15 until July 15. Now some latecomers the IRS warns taxpayers that they’ve filed a tax return now or are faced with a large expense in the future.
In the tax Agency reminded that penalties and interest will be applied to the taxes payable after July 15. And even if the individual cannot pay the full amount of their taxes, it still must submit a Declaration as soon as possible to reduce penalties.
Penalties and interest begin to accrue immediately. This is a penalty of 5% of the unpaid tax each month up to a maximum of 25%. The penalty for late payment of tax is 0.5% of the amount you owe monthly, but not more than 25%. If both fines are payable in the same month, the penalty for failure to pay the fine is reduced to 0.5%.
The fastest way of payment in electronic form, taxpayers will receive an immediate confirmation.
People who are owed a tax refund, should not have to pay any fines, but they will not receive their money until they submit the Declaration.
The IRS also noted that taxpayers are entitled to additional time for the filing and payment without any penalties and interest, including military personnel who have served or are in a combat zone, support personnel in combat zones and some of the victims of natural disasters.
People who have a history of timely filing and payment of taxes, often qualify for waivers, said the IRS.