Form 4868

You Owe Taxes On Your Returns – To File Or Not To File?

So you owe taxes and you haven’t filed yet, is there any advantage in waiting or should you file as soon as possible? If your current financial situation is precariously stressed, should you wait until you obtain the necessary funds to pay any taxes due?

Taxpayers that have failed to file tax returns for some extended period of time should file them immediately. Even if taxpayers have filed for an extension, time is of the essence to avoid costly penalties assessed by the IRS. When taxpayers do not file by the April 15th deadline, the IRS assesses failure to file (FTF) and failure to pay (FTP) penalties.

Why You Should File Past Due Tax Returns, Now!

Taxpayers that have failed to file tax returns for some extended period of time should strongly consider doing so immediately. Even if taxpayers have filed for an extension, time is of the essence to avoid costly penalties as the IRS assesses failure to file (FTF) and failure to pay (FTP) penalties in this situation.

The failure to file penalty is assessed at a rate of 5% per month or partial month up to a maximum rate of 25%. The failure to pay penalty is assessed at a rate of 0.5% per month or partial month up to a maximum rate of 25%. If the IRS assesses both the FTF and FTP penalties, the FTF penalty is reduced by the amount of the FTP penalty.

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