Nasty Penalties

The minimum penalty for being 60 days late filing your federal income tax returns increases from $215 to $435 for 2020 returns.

Years ago, if there was no tax due, there was no penalty for filing your tax returns late. The late filing penalty was 5% of the tax, and when tax is zero so was the penalty.

The old rule was that the penalty for late filing your income tax returns was 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%. This still holds true today. However,now there is an additional minimum penalty that applies if you file more than 60 days late. The minimum penalty is now $435 or 100% of your unpaid tax, whichever is less.  If you owe a lot of tax the sky is the limit!

The good news is that the IRS may waive the penalty if you can show reasonable cause.

  • Mark S Gleason CPA
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply


Mattson Gleason CPAs Ltd

10627 West 165th Street
Lakeville, MN 55044

Tel: 612-861-4542
Fax: 952-435-3642


Contact Form

Mattson Gleason CPAs Ltd BBB Business Review