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Tracy Byrnes. let's just walk through some of these. The penalties and the biggest penalty is not filing on time.

Lisa Greene-Lewis. Yes, it's 5% it can go up to 25% of what you owe, which is crazy. 

Tracy Byrnes. It's 5% up to 25% and it's just because you didn't put it in file a piece of paper or you didn't hit send on your  file extension. Like it's really silly. And we have an example here. $2,000 is your penalty per month times 0.5% total possible late payment could be 25% that's $500 just because you didn't send something, which to me is craziness. This next one is pretty crazy too though. You're underpayment penalties. TheIRS starts calculating interest in it adds up really quickly, doesn't it?

Lisa Greene-Lewis. Yeah. Well I'm so late. Payment penalty is half of 1% and then you also do get charged interest as well.

Tracy Byrnes. Right? And interest is calculated at the fence. Short term interest rate, which is about 0.81% now plus the IRS is 3% so tack that on to the, so 3.81% on all the money you owe. That adds up really fast too.

Lisa Greene-Lewis. Yeah they can. So I mean definitely you owe, like I said, pay what you can and then also the IRS, they will do installment agreements that allow you to pay over six years, but you know you still will accrue like the interest and late payment penalty.

Tracy Byrnes. Right. To me that's really important to it. You just acknowledge that you don't, you don't have the money right now. I think the IRS for the most part is like pretty cool that you can get on their payment plan. You can almost tell them what you want. You are able to send for the most part, they'll be cool with it. As long as you just admit the problem, don't hide from it. I think that's the biggest thing.

Right. So many people are afraid of the IRS and they don't, they don't say anything.

Lisa Greene-Lewis. Yeah, I know.

Are you wondering, what happens if I miss the April 15, 2019 tax filing deadline?

Well, there's some good news and some bad news here.

What a Tax Extension DOES and DOES Not Do?

First, the bad news. If you miss that deadline, you must still file your return. Filing late could cost you more thanks to late-filing interest and penalty charges.

Now, the good news.  If you are due a refund, the IRS will not penalize you for failing to get your paperwork in on time.

What Are the Penalties for Filing Late?

Penalties are calculated at 0.5% of unpaid balance per month, 25% is the max you can be charged in late penalties.

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