IRS highlights higher penalties for some tax returns filed after Sept.
14

WASHINGTON — The Internal Revenue Service today urged individuals who
owe taxes but have not yet filed for 2019 to act now to avoid higher
penalties that, by law, start after Sept. 14.

The tax deadline was July 15 this year. Taxpayers who submitted an
extension have until Oct. 15 to file and do not face the failure to file
penalty if they file their taxes by that deadline. But taxpayers need to
remember that an extension to file is not an extension to pay. Any taxes
they owed after the July 15 deadline are subject to the failure to pay
penalty and interest.

Those taxpayers who didn’t request an extension, and still owe taxes,
face both the failure to file and the failure to pay penalties. They
should file now and pay what they can before larger penalties take
effect after Sept. 14.

The penalty for not filing a federal tax return by the due date, or
extended due date, is generally 5% of the unpaid tax for each month or
part of a month that a tax return is late, up to 25% of the unpaid tax.
However, if the return is more than 60 days late, a minimum penalty
applies. If no return has been filed after 60 days, the minimum penalty
that can be charged is $435 or 100% of the unpaid tax, whichever is
less. This year, that important 60-day date occurs after Sept. 14. In
addition to penalties, interest will also be charged on any tax not paid
by the July 15 due date.

Remember, if a refund is due, no penalty is charged on the late return
filed by a taxpayer.

IRS Free File [28] is available on IRS.gov through Oct. 15 to prepare
and e-file a 2019 individual return.

Penalty relief may be available

Taxpayers who have not been assessed any penalties for the past three
years often qualify to have penalties abated. A taxpayer who does not
qualify for the first-time penalty relief may still qualify for penalty
relief if their failure to file or pay on time was due to
reasonable cause and not willful neglect. By law, interest cannot be
abated.

Get more time to pay

There are options for taxpayers who owe but can’t pay the full amount.
Qualified taxpayers can choose to pay any taxes over time through a
payment plan, including an installment agreement [30] that can be set up
in a matter of minutes on IRS.gov. A taxpayer’s specific tax situation
will determine which payment options are available. The IRS has more
information for taxpayers who owe taxes, but cannot afford to pay the
full amount [31].

Check withholding

To avoid surprises next year, taxpayers can use the IRS Tax Withholding
Estimator [32] to do a Paycheck Checkup [33] to have the right amount of
tax withheld during the year.

The IRS reminds taxpayers that unemployment compensation is generally
taxable. To determine if unemployment is taxable, taxpayers can visit
the Are Payments I Receive for Being Unemployed Taxable? [34] tax tool
at IRS.gov.

Taxpayers can choose to have federal income tax withheld from their
unemployment payments. For more information, go to Form W-4V [35],
Voluntary Withholding Request. Otherwise, taxpayers receiving
unemployment benefits may be required to make quarterly estimated tax
payments (46)

IRS highlights higher penalties for some tax returns filed after Sept. 14

IRS highlights higher penalties for some tax returns filed after Sept. 14

WASHINGTON — The Internal Revenue Service today urged individuals who owe taxes but have not yet filed for 2019 to act now to avoid higher penalties that, by law, start after Sept. 14.

Author: dev_mike_HA--2018

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IRS highlights higher penalties for some tax returns filed after Sept.
14

WASHINGTON — The Internal Revenue Service today urged individuals who
owe taxes but have not yet filed for 2019 to act now to avoid higher
penalties that, by law, start after Sept. 14.