the IRS charges 60% annual penalty for late payments if you electronically file your return on...

the IRS charges 60% annual penalty for late payments if you electronically file your return on September 25th and owe $7,800 what is the late penalty use actual time and assume the deadline is April 15th

Expert Solution

Hi !

Before I provide solution , please understand the rules of IRS for the default of Late Filing Return and Payment.In your case this seems to be the case of both.

The penalty for filing late is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25 percent of your unpaid taxes.
If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes. That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date.
If both the 5 percent failure-to-file penalty and the ½ percent failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5 percent.

Accordingly,

Unpaid Tax - $ 7800

Default months or Part of months- April, May, June, Jul, Aug & Sep.

Penalty Type	Amount
Failure to File (5-0.5)5%7800	$1,755
Failure to Pay 0.5%67800	$234
	$1,989

This is also verified by the IRS govt site.

ekkarill92 answered 1 year ago

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