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| Less that a week until the tax deadline! If you can’t pay taxes on time, does filing late affect penalties much? |
April 11, 2000 |
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Answer: yes, by a lot!
You aren’t doing yourself any favors by not filing your return on time when you can’t pay your taxes on time.
You don’t escape interest and penalties by filing your return on time (April 17 this year), but you will likely greatly reduce the monetary punishment.
You may have to pay 5.0 percent per month on the taxes you owe, plus 9 percent interest, by missing the filing deadline.
By filing on time, the penalty will likely be just 0.5 percent per month, plus interest. That penalty can drop even further to 0.25 percent monthly if the IRS agrees to an installment payment plan that you propose, as part of a timely tax return.
The IRS notes that sending the biggest partial payment possible with your return can go a long way in cutting the penalties you ultimately pay. |
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