Late Filing Penalty

This is a penalty that will  put the hurt on you because the IRS really, really wants you to send in that tax return. They impose a penalty of 5% of the unpaid balance each month that the tax return is late up to a maximum of 25%. An extension can get you another 6 months to file the individual return, but you better send it in by that extended due date of October 15 to avoid the penalty. If you have never had a tax penalty before including a late payment penalty, you will probably be able to get a waiver of the penalty by the IRS. If you have other penalties but never a late filing penalty, you may be able to get 25% of the penalty waived. Even if you can't make any payments on the amount due on your tax return, it is much better for you to send in the return to avoid this punishing penalty.