If you forget to file your 2023 tax return, you may have to face a penalty says the IRS. A Failure to File penalty may apply if you do not file your 2023 tax return by April 15.
The IRS says that this penalty is just a percentage of the taxes you did not pay when they were due. If you file before April 15, you will not have to pay the Failure to File Penalty.
HOW THE IRS INFORMS TAXPAYERS THEY OWE THE PENALTY
Do not worry because the IRS will send you a Failure to File penalty letter. This letter or notice will inform you of what you should do in order to avoid having a larger penalty.
Some taxpayers may agree with this notice. If so, you do not have to contact the IRS. Nevertheless, others may not agree with this notice letter. If you are in this situation, you can simply call the Internal Revenue Service at 800-829-1040.
Some taxpayers receive a letter or notice from scammers. If you find it suspicious, report it as soon as possible. Do not give any money or personal information to any person pretending to be the IRS.
HOW THE IRS CALCULATES THE PENALTY
The longer you delay filing your 2023 tax return after the deadline, the higher your penalty will be up to a limit. For example, the Internal Revenue Service claims that the Failure to File penalty is 5% of the unpaid taxes.
Remember that it is 5% of the unpaid taxes for each part of a month or month that the 2023 tax return is late. Luckily, the penalty will not exceed 25 percent of the unpaid taxes.
For your information, the Internal Revenue Service charges interest on a penalty. That is why it is of vital importance to pay as soon as possible. Or else, your debt will continue growing. If after 5 months you have not paid, the Failure to File penalty will max out up to 25%. Failure to pay will continue increasing.
