What Is the Penalty for Not Filing Taxes?

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The penalties for not filing taxes include a late filing penalty and a late payment penalty, both of which can cost up to 25 percent of unpaid taxes per month. Learn about exceptions to tax penalties, such as losing tax records in a natural disaster, with information from an independent CPA in this free video on filing taxes.

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Video Transcript

My name is Miranda Chook, a CPA. Now there are a couple of penalties for filing taxes late. One is a late filing penalty which means that you've actually filed your tax return itself late, even after extensions and that penalty ranges anywhere from 5 to 25% per month or a portion of the month of the unpaid taxes due. There's also the late payment penalty and that ranges anywhere from half a percent up to 25% of the unpaid taxes. Now there are situations where the IRS may actually waive these penalties and those include cases where you may have lost all of your tax records in a natural disaster. There's been a death in your family or perhaps you're suffering from a serious illness. So if any of these situations affect you, please contact the IRS directly.

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