The US Tax Code is complex, and because of that, it can be difficult to know when you owe taxes. What’s more, once you are late filing your taxes, you run into penalties depending on the type of taxes you owe. That means having success with filing taxes requires you to stay on top of these things and know what can happen if you miss a tax deadline.<\/p>\n\n\n\n
Once you know the penalties for filing taxes late<\/a>, you often develop a good plan of action, never again to have to face the substantial penalties for filing late. Because when it comes to the penalties for filing taxes late, three different rates can apply to you.<\/p>\n\n\n\n Please keep reading if you want to learn more about filing your taxes and what penalties you face if you file your taxes late.<\/p>\n\n\n\n When it comes to the penalties for filing taxes late, there are three different rates. IRS rates apply depending<\/a> on how much you owe. The first 10% penalty will be applied if the tax due amount is $1-10,000.<\/p>\n\n\n\n However, if the tax bill is more than $10,000 but less than $100,000, the charge includes a penalty of 25% that becomes part of your tax bill. Any tax amount that exceeds $100,000 will incur a penalty of 28%.<\/p>\n\n\n\n It also is dependent on whether or not you file your taxes as an individual or a corporation. The IRS often has different rates for various criteria for a diverse list of penalties. That means you can be assessed at different rates depending on whether or not the IRS thinks you or delinquent or filed late.<\/p>\n\n\n\n Typically, late payment penalties range from 0-25% of what your unpaid tax bill is. The penalty rate is based on how much you owe to the IRS and if you are a company or an individual. However, there is good news in that the maximum late payment penalty is 25%.<\/p>\n\n\n\n If you are an individual filing taxes late and owe more than $1,000, but you don’t owe any more than $10,000, then the penalty you are charged is 0%<\/a>. But the bump-up happens if you owe the IRS more than $10,000 but less than $100,000.<\/p>\n\n\n\n Your late payment penalty for that rant is between 1% to 15%.<\/p>\n\n\nFiling Taxes Late<\/h2>\n\n\n\n
Late Payment Penalties<\/h2>\n\n\n\n