How much do you think I will have to pay the IRS ?

Question

Hi... I never filed my 2005 Tax return. Long story why..I was misinformed..anyways.... In 2005 I was claimed as a dependent and according to my 1040-EZ I owe the IRS $303. But thtas only if I would have paid them by April 2006.... Does anyone know any idea how much the penalties will cost me for filing late?

Answer 1

For such a small amount you will probably only have to pay interest. It might be 6 or 7% of the amount, so you probably will have to pay 303 plus no more than 20. You can send in the return with the $303 and you will get a notice from the IRS on the additional amount due for late payment.

Answer 2

There are three separate penalties:

1)Failure to File Penalty
2)Failure to Pay Penalty
3)Interest

Each is calculated differently.
Failure to File Penalty
The failure-to-file penalty is calculated based on the time from the deadline of your tax return (including extensions) to the date you actually filed your tax return. The penalty is 5% for each month the tax return is late, up to a total maximum penalty of 25%. The percentage is of the tax due as shown on the tax return. If your tax return is more than five months late, simply multiply your balance due by 25% to calculate your failure to file penalty.

Failure to Pay Penalty
The failure-to-pay penalty is calculated based on the amount of tax you owe. The penalty is 0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty. The penalty is calculated from the original payment deadline (the original April 15th filing deadline) until the balance due is paid in full.

Interest
Interest is calculated based on how much tax you owe. Interest rates change every three months. Currently, the IRS interest rate for underpayment of tax is 8% per year. The interest is calculated for each day your balance due is not paid in full.

Answer 3

The answer is a little bit messy, so here is the URL: http://www.irs.gov/taxtopics/tc653.html.

It looks like, worst case, $175 in interest and penalties for filing late and for paying late.

Answer 4

Before you do anything else, see if you can get some deducted off of that amount by filling out the back of your 1040ez.

Answer 5

there are 2 sure things in life... Death and taxes... I only believe in Death Screw the taxes!!!