What is the penalty for filing taxes late?

In the United States, Monday, April 18 was tax deadline day, which signifies a variety of things. Some may face fines or additional penalties if they fail to fulfil the deadline without requesting an extension.

The first thing to note is that if you are just expecting a refund, you cannot be penalised for filing your taxes late. However, if you owe any amount of taxes, you may face penalties if you file late.

Two types of penalty fees can be imposed: the Failure to File Penalty and the Failure to Pay Penalty. The penalty fees differ depending on just how late you file and with interest charged on these fees.

The Failure to File Penalty is 5% of the unpaid taxes for each month or part of the month a tax return is late. The penalty will not be more than 25% of your unpaid taxes.

The Failure to Pay Penalty is 0.5 % of the unpaid taxes for each month or portion of a month that the tax is not paid. The penalty will not be more than 25% of your unpaid taxes.