The IRS (Internal Revenue Service) always reminds its taxpayers about the significance of filing as well as paying taxes at a particular time. In return, they offer some help to the people with problem paying their taxes.
As a taxpayer, you should pay taxes on time even though you’re unable to pay the amount in full. After that, you can pay the amount remains as early as you can. Don’t forget one thing that paying sooner makes you less owed because paying later it adds a bit more total of taxes.
You have to face two types of penalties for paying taxes later on. The first one is for making the delay of filing, and the second one is for making the payment is late.
Both of the penalties will add together with your total amount faster. So, before you visit some financial services Hadfield, to get help in this issue, look at the below advantages of paying taxes at the exact time according to the super annuation and estate planning Hadfield.
Penalty for Late-Filing
As a taxpayer, if you file your tax return of 2019 with a late of 60 days, you have to a penalty. The penalty amount if $210 that will add together with your total tax payment.
It’s 100% of the owing tax if you have an unpaid tax under $210. Conversely, it’ll be about 5% of the fee you didn’t pay every month that will be 25%. If you have unpaid a refund, you should not get any fine for late filing.
Penalty for Late-Payment
The penalty for late payment is 0.05% of your unpaid tax for every month. The percentage can be as higher as 25% for it in due course. But, if you have done a payment deed with the IRS, the rate of the penalty is cut in fifty percent or half for you. That’s the case where it’s ¼ of 1% that’s equal to 0.25% per month.
Combined Penalty for Each Month
The combined penalty means adding together of both late payment and late filing penalties. The highest amount charge for these penalties is 5% for every month. So, you should file or request an extension on time if you can’t pay.
But, paying the taxes on time or as early as possible is always better. It’ll help you to avoid the penalties. The IRS offers e-file along with programs of Free File for the more relaxed and faster filing process.
For your 2019 returns, the e-file plus Free File process will be continuing and available up to the fall of 2020. In any case, you should always keep a duplicate copy of your tax returns.
You may require the amount of the “Adjusted Gross Income” (AGI) from your previous year’s tax returns to confirm your identity if you’re the first-timer to use an app.
Think About a Loan
If you can’t pay your full amount of taxes, you have the option to get a loan. Also, you can use your credit card that’s less expensive as well other than remaining unpaid to the IRS.