Hi. I’m Tim Mayclin, CPA from Rohnert Park, California.
In a previous video, we talked about what happened if you can’t pay your taxes on time. Today, I want to talk about the penalties and interests that are going to be assessed. The IRS charges penalties from April 15th, of 0.5% if you file your taxes on time.
If you don’t file it on time or don’t file an extension, and then don’t file a return by October 15th, the penalty increases to 5% a month, which is 60% per year. That’s pretty hefty. So you want to make sure that you file your return on time. Many people don’t realize that you can file a tax cert without making a payment. Filing the return is very important.
If this suits your situation, contact your local CPA.