Issue Number: IR-2023-113
Inside This Issue
Special options available to help taxpayers who missed the April deadline; people encouraged to file, pay by June 14 to avoid larger penalties and interest
WASHINGTON — The Internal Revenue Service today encouraged taxpayers who owe unpaid taxes and missed the April 18 tax deadline to file their 2022 federal income tax return and pay any tax due by Wednesday, June 14, to avoid a larger late-filing penalty.
Penalties and interest can grow quickly. The IRS reminded taxpayers about important payment programs that can help as well as the availability of special first-time penalty abatement relief for those who qualify.
Normally the late-filing penalty for each month -- or part of a month that a return is late -- is 5% of the unpaid tax, up to a maximum of 25 percent. The late-filing penalty will stop accruing once the taxpayer files.
But, by law, if a return is more than 60 days late, the minimum late-filing penalty, also known as a Failure to File penalty, is either $435 or 100% of the unpaid tax, whichever is less. This means the penalty will equal the tax due if the taxpayer owes $435 or less. If they owe more than $435, the minimum penalty will be $435.
The IRS must receive the return by June 14; returns mailed on that date normally won’t avoid the larger penalty. For that reason, the IRS recommends taxpayers file electronically by June 14.
In addition, taxpayers can limit late-payment penalties and interest charges by paying their tax electronically. The fastest and easiest way to do that is with IRS Direct Pay, a free service available only on IRS.gov. Several other electronic payment options are also available. Visit IRS.gov/payments for details.
Late-payment penalties and interest will stop accruing as soon as the tax is paid. The taxpayer need not figure any of these charges. Instead, the IRS will bill them for any amount due.
Taxpayers can review information on the Failure to File and the Failure to Pay penalties by visiting IRS.gov/penalties.
There are many important provisions that can help taxpayers in these situations.