Tax season is right around the corner! Usually, around mid-April, all individual tax returns must be filled with the IRS. That time of the year is one of the most stressful periods for many Americans.
There are a lot of aspects that you need to be careful about. Otherwise, you will get penalties, and we’re more than sure that you won’t like that. Let’s see what penalties you’ll get if you’re doing the following things:
If you’re paying too late or if you don’t pay at all, the penalty will apply to your federal tax debt that remains unpaid as of the due date. The IRS will tax you 0.5% for each month that you haven’t paid your taxes.
Filing taxes late
If you are filing your taxes late, then you will face a penalty of 5%. That 5% will be applied each month or part of a month that your return is late. This penalty cannot exceed 25%.
You will pay at least $435 or a penalty that’s equal to 100% of the taxes that need to be filed in 2022.