Penalizations for submitting tax return late

Last week the tax season ended, and maybe you forgot or ran out of time to submit the paperwork. The IRS recommends submitting your files as soon as possible to dismiss or reduce the possible penalties. They may apply if you didn’t:

File tax return on time.
Pay taxes owed on time and in the right way.
Prepare an accurate return.
Provide accurate and timely filed information returns

Learn more about IRS penalties and how to identify which apply to your profile.

Where will I be notified?

IRS informs the penalties applied to your account via notice or mail. On the notification is included an identification number, reason for the charge and next steps to take.

Search your account balance for taxes owed, as they may start to accumulate interests for late-filing.

Kinds of penalties

The main penalties applied are:

- Failure to file, pay or deposit: Applies if any of this actions aren’t completed by the due date.
- Underpayment of estimated taxes: This penalty is assigned on Individual and corporate profiles that don’t cover the full amount of estimated taxes before the due date.
- Information return: In case you don’t file or fill the required information correctly.

Accuracy-related: Refers to cases where the taxpayer doesn’t claim all their income or when they claim credits for which they don’t qualify.

Erroneous claim for refund or credit penalty: applies when you submit a claim for refund or credit of income tax for an amount or reason that doesn’t apply.

Appeal the penalty

In many cases, the IRS may remove or reduce some penalties if you present some evidence showing reasonable grounds for why you weren’t able to fulfill your tax obligations due to circumstances beyond your control.

Verify the information on the notice or letter you should have received . If the information is incorrect, follow the instructions in your notice to resolve the issue and remove the possible penalty.

Forget about future penalties

Accountants and bookkeepers are updated to the news and new tax obligations that individuals and corporations should fulfill. Look for a professional on the tax topic to help you with your paperwork and avoid penalties.