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2015 IRS Late Tax Penalties

Failure to file or failure to pay; is there a lesser of two evils?

There are two IRS tax penalties that you put yourself in jeopardy of paying when you don’t file your tax return on time.

  1. Failure-to-File Tax Penalty. This applies to you if you did not file your tax return by the tax filing deadline and owed tax to the IRS.
  2. Failure-to-Pay Tax Penalty. This applies to you if you filed your tax return but did not pay your entire tax liability due by the tax filing deadline.

If you are expecting a refund, you will never be held liable for a penalty fee.

How do I calculate my failure-to-file tax penalty?

The late filing penalty is 5% of the additional taxes owed amount for every month or fraction of a month that your return is late. This is capped at 25%. Let’s take a look at an example.

Let’s say you owe the IRS $950. One September morning, you wake up and it hits you. You forgot to file your 2015 tax return! You can assume that you will owe the IRS an additional $240. Here’s the math:

$950 tax liability x 5% = $47.50 per month late Continue reading “2015 IRS Late Tax Penalties”

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Help! I Still Need to File My 2013 Taxes!

Running late? Luckily, you can file a late 2013 tax return online with RapidTax!

You desperately need to file your 2013 taxes but somehow continue to put it off.

Sound familiar? You’re not alone. Filing taxes, especially late taxes, can seem overwhelming, time consuming and draining.

Rather than trying to file your late 2013 tax return yourself, you can pay an accountant outrageous fees to do it for you. Don’t waste your time or money. Instead, file your 2013 taxes online with RapidTax and have it completed within 15 minutes.

Will I pay late fees for filing my 2013 taxes late?

If the IRS owes you a refund from your 2013 tax return, you won’t have to pay any late fees.

However, you will be penalized if you have tax due. There are two IRS late fees you could end up facing:

  • Late-Filing Penalty: For every month past the deadline that your tax return has not been filed, a 5% penalty of your tax bill amount, up to a maximum of 25% (the minimum penalty is $135 or 100% of your unpaid tax; whichever smaller) is added to the amount you already owe.

  • Late-Payment Penalty: For every month your tax bill goes unpaid, there’s a fee totaling .5% (½ of 1%) of your tax bill.

That’s a lot of extra money you’re giving away to the IRS. Continue reading “Help! I Still Need to File My 2013 Taxes!”

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Do I Need To File a 2014 Tax Return?

Learn if you’re required to file a 2014 Tax Return…

With RapidTax, you have until October 15, 2015 to e-file your 2014 Tax Return.

However, you may be unsure whether or not you need to go to the effort of filing a 2014 Tax Return. You should first know that the requirement to file a federal tax return depends on your;

  • filing status
  • age
  • income
  • dependency status
  • other unique circumstances

Does Your Income Require Your To File a 2014 Tax Return?

If you’re under 65 and you earned the following income (or more), you’re required to file a 2014 Tax Return;

  • Single: $10,150
  • Head of Household: $13,050
  • Married Filing Jointly: $20,300
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $16,350

If you are 65 or older and you earned the following income (or more), you’re required to file a 2014 Tax Return:

  • Single: $11,700
  • Head of Household: $14,600
  • Married Filing Jointly: $21,500
  • Married Filing Separately: $3,950
  • Qualifying Widow(er): $17,550

If you are being claimed as a dependent and you earned more than $6,100 in 2014, then you’ll need to file a tax return. Continue reading “Do I Need To File a 2014 Tax Return?”