# Filing Late Taxes – The Consequences



## MyExpatTaxes (10 mo ago)

If you are in a situation where you are filing late taxes, penalties and losing benefits connected to your foreign assets and income may happen.

Two specific IRS penalties are for filing late taxes. One is Failure to File, and the other is Failure to Pay. We will explain each one below according to the IRS guidelines:

*Failure to File Penalty:*

_5% of unpaid tax required to be reported._
_Reduced by the “failure to pay” penalty amount for any month where both penalties apply._
_Charged each month or part of a month the return is late, up to 5 months._
_Applies for a full month, even if the return is filed less than 30 days late._
_Income tax returns are subject to a minimum late filing penalty when filed more than 60 days after the return due date, including extensions. The minimum penalty is the LESSER of two amounts – 100% of the tax required to be shown on the return that you didn’t pay on time, or a specific dollar amount that is adjusted annually for inflation. The specific dollar amounts are: _
_$435 for returns due on or after 1/1/2020*_
_$210 for returns due between 1/1/2018 and 12/31/2019_
_$205 for returns due between 1/1/2016 and 12/31/2017_
_$135 for returns due between 1/1/2009 and 12/31/2015_
_$100 for returns due before 1/1/2009_

Source: IRS.gov

*Failure to pay tax reported on return:*

_0.5% of tax not paid by due date, April 15; 0.25% during approved installment agreement (if return was filed on time, and taxpayer is an individual); 1% if tax is not paid within 10 days of a notice of intent to levy_
_Recurring charge on the remaining unpaid tax each month or part of a month following the due date, until the tax is fully paid or until 25% is reached_
_Full monthly charge applies, even if the tax is paid before the month ends_
Source: IRS.gov


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