Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778
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The penalty for filing late is usually 5% of the unpaid taxes for each month that a return is late. This penalty will not exceed 25% of your unpaid tax.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $153 or 100% of the unpaid tax.
If you do not pay your taxes by the due date, you generally have a failure to pay penalty of half of one percent of your unpaid taxes each month after the due date that the taxes are not paid. This can be as much as 25% of your unpaid tax.
If you timely filed a request for an extension of time to file and you paid at least 90% of your actual tax liability by the original due date, you will not be faced with a failure to pay penalty if the remaining balance is paid by the extended due date.
Abatement of these penalties fall into four categories
1) Reasonable cause
2) Statutory Exception
4) Correction of an IRS error
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