The penalties which the Internal Revenue Service (IRS) apply for failing to file your taxes on time are severe. The late filing penalty will apply to any portion of your tax debt which is unpaid as of the payment due date (normally at April 15 of every year). This failure-to-pay penalty will be calculated based on several conditions. Chief among these will be the time which has elapsed between the deadline date of your tax return (including extensions, if you have been granted any) to the date that you actually filed your tax return. If you have not filed your tax return at all, the amount of the penalty will very naturally be higher.
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The penalty assessed and levied by the IRS will normally be 5% for each month (or part of a month) during which your tax return is late (or remains unfiled altogether), up to a maximum penalty of 25%. If you should file your return more than 60 days after the due date (or extended due date), the minimum penalty will be either $135 or 100% of the unpaid tax (whichever amount is lesser). These penalties can be lessened, or waived altogether, if the tax payer can show due cause to the IRS as to why they were unable to pay on time. Unfiled taxes is the kind of issue that if not dealt with, can cause you major pain and stress later on.