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If you miss this week’s tax filing deadline, you might be feeling anxious about getting hit with late-filing penalties by the IRS. However, if you don’t have a recent history of filing your taxes late, it’s possible to apply for something called a first-time penalty abatement, which will waive some of your penalties. Here’s a look at how you can apply.
First, if you are expecting a refund, there’s no penalty for filing late; however, if you owe taxes and miss the April 15 deadline without requesting an extension, you should file quickly to limit penalties and interest. Typically, late tax filers owe a failure-to-file penalty—5% of your unpaid tax balance per month (though the total penalty won’t exceed 25% of you tax due).
But if you file more than 60 days after the tax filing deadline, your penalty becomes the lesser of $435 or 100% of your unpaid tax balance. If you filed on time but couldn’t afford to pay your taxes, the penalty is much smaller, at 0.5% of your unpaid balance per month…Story continues….
By: Lifehacker Staff
Source: How to Avoid Paying a Penalty If You Filed Your Taxes Late | Lifehacker
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