(PatriotWise.com) — The Internal Revenue Service warned taxpayers who missed the April 15 tax deadline that they could face large penalties if they failed to file their tax returns and pay the taxes due.
In a June 10 news release, the IRS highlighted various options available for taxpayers who missed the April 15 deadline.
Under current tax laws, those who fail to pay the taxes owed would be subject to an 8 percent interest rate that is compounded daily. The late filing penalty is 5 percent each month for a maximum of 25 percent.
Any taxpayer who files more than 60 days after the April 15 deadline would face a minimum penalty of either $485 or 100 percent of the unpaid taxes, whichever amount is lower. Failure to pay the minimum penalty results in a 0.5 percent interest charge on the unpaid taxes for each month for a maximum of 25 percent.
The IRS urges taxpayers who missed the deadline to pay electronically through its Direct Pay service to limit their penalties and interest charges.
Some taxpayers qualify for more time to pay, even if they did not apply for an extension.
According to the IRS, members of the military on active duty outside of the US and those serving in combat zones qualify for extra time to file their tax returns and pay their taxes.
Likewise, taxpayers in some disaster areas automatically receive an extension on paying their taxes. The IRS maintains details on the deadlines and the most recent disaster areas that qualify for this extension.
US citizens and green card holders who work and live outside of the US are also given additional time to file and pay their 2023 taxes.
For taxpayers who are unable to pay their taxes in full, the IRS also offers several repayment options. Taxpayers can apply online for a short-term or long-term repayment plan.
Short-term payment plans give taxpayers an additional 180 days to pay the full balance, including penalties and interest, on balances less than $100,000.
Under a long-term payment plan, taxpayers would have up to 72 months to pay the full balance on taxes, penalties, and interest of less than $50,000.
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