{"id":777,"date":"2017-11-01T15:44:01","date_gmt":"2017-11-01T15:44:01","guid":{"rendered":"http:\/\/www.irstaxapp.com\/?p=777"},"modified":"2017-11-01T15:44:42","modified_gmt":"2017-11-01T15:44:42","slug":"penalty-for-filing-taxes-late-how-to","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/penalty-for-filing-taxes-late-how-to\/","title":{"rendered":"Penalty for filing taxes late : How to Prevent ?"},"content":{"rendered":"

Penalty for filing taxes late is also called penalty for failure to file . In simple legal terms, filing tax return by due date is obligatory on all tax payers. If you file taxes late means you are inviting penal provision under Paragraph 1 of section 6651 of US code 26 which basically says that you will be imposed\u00a0 penalty<\/strong> @ 5% on tax outstanding as on due date of filing tax return ( 15th April or extended date) .The\u00a0 computation of penalty shall be\u00a0 for the period of lapse ( in months or part of months) to file tax return.<\/p>\n

How to Prevent Penalty for filing Taxes Late ?<\/h2>\n

(i) Show Reasonable\u00a0 cause for failure to file<\/h3>\n

The answer to this question is hidden in the law for imposing penalty which is section 6651(1)(a) of Internal Revenue Code or US Code 26 .The law under\u00a0 section 6651(1) (a) says that\u00a0 penalty for the failure to file penalty<\/strong> may not be imposed if it is shown that such failure is due to reasonable cause and not due to willful neglect. <\/em>Relevant provision of Internal Revenue Code ( section 6651(1)(a) is as under:<\/p>\n

(a)<\/span> Addition to the tax <\/span>In case of failure\u2014<\/span><\/p>\n

(1)<\/span>to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect<\/strong><\/span>, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate;<\/strong><\/em><\/div>\n<\/blockquote>\n

Thus .the law under IRC 6651 also provide a relief to all those who had genuine reasons for filing taxes late. So the answer to question like ” what happens when you file taxes late”\u00a0 is not<\/strong>\u00a0 a definite penalty for failure to file tax return.<\/span>\u00a0So you can move a petition to IRS ( off course after paying penalty imposed for filing late return ) explaining the situation\u00a0 or reasonable cause for failure to file tax return in time. If you’re billed for penalty charges and you have reasonable cause for abatement of the penalty, IRS advises taxpayers<\/a> as under<\/p>\n

\n
send your explanation along with the bill to your service center, or call us at 800-829-1040 for assistance. The IRS doesn’t generally abate interest charges and they continue to accrue until all assessed tax, penalties, and interest are fully paid.<\/em><\/div>\n<\/blockquote>\n

2. Apply for extension of due date<\/h3>\n

You can apply to IRS for extension of the due date . This is to be done before the due date of filing of tax rerun. For example 15th April 2018 for tax return for year 2017. Request the extension of time to file by the regular due date of your return . Just E-file Form 4868 (PDF)<\/strong>, . This will give you extra six months<\/strong> to file tax return .<\/p>\n

3. Try to Pay Tax by Due date<\/h3>\n

There can not be p<\/em>enalty for filing taxes late if i owe nothing<\/em> is a god thought.<\/span>The penalty for failure to file return within due date is computed on tax outstanding as on due date for filing tax return. So if there is no outstanding , the penalty can not be imposed . Just note that , even in such case if the late is more than 60 days, maximum penalty is $ 205<\/p>\n

4. Check if your case falls under exception<\/h3>\n

The due date for filing of tax return does<\/p>\n