What is the failure to file penalty?

The failure to file penalty refers to the fee added to the tax you owe if you fail to file your tax return by the April due date.

You can avoid the penalty for a six month period if you submit an extension to obtain more time to file by the April deadline. Your new deadline is pushed to mid-October, at which point you would be subject to the penalty without recourse if you once again failed to file in time.

The penalty for failing to file in time is typically 5 percent of your tax liability per month or part of a month that your taxes remain unpaid.

Note that if you file your return more than 60 days after the tax deadline your penalty is $135 or the full amount of your tax owed, which is smallest.

Leave a Reply

Your email address will not be published. Required fields are marked *