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On 1/8/2021 at 10:37 AM, schirallicpa said:

Do I still have to paper file a late 2019 return.

Is there a potential to minimize penalties for taxes owed?  For example, if an extension was filed, then I believe late filing penalties would jump from 15% to 20% after January 15th.  If an extension was not filed and tax owed, then probably already maxed out at 25%.

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I owed 14K and the interest and penalty was about $200 each based on a letter/bill I received a week ago.  I filed in time but I didn't pay, so I was expecting a 25% penalty for not paying plus interest.

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On 1/10/2021 at 8:49 PM, DANRVAN said:

Is there a potential to minimize penalties for taxes owed?  For example, if an extension was filed, then I believe late filing penalties would jump from 15% to 20% after January 15th.  If an extension was not filed and tax owed, then probably already maxed out at 25%.

The IRS says "each month or part of a month" and nothing about the 15th of each month.  So, all of Jan is 5% and then after Jan 31 another 5%.

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8 hours ago, DANRVAN said:

That sounds right Max, thanks.

In actuality, it breaks down to 4.5% late filing and 0.5% late payment per month, so when the IRS issues a letter with the penalties it will show late filing as 22.5%.  The late payment penalty maxes out at 25%.  

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