What kind of penalties will I incur if I file late or don’t pay a balance due on time?

Late filing of a tax return results in a 5% penalty of the unpaid balance for each month or part of the month a tax return is late up to a maximum of 25%. If the return is more than 60 days late, the penalty is the lesser of $100 or the tax due. There is no penalty when a refund is due.

For any unpaid balance, there is a .5% penalty for each month or part of a month there is an unpaid balance, up to a maximum of 25%. The penalty is applied monthly to the unpaid balance.