Amended Income Tax Question, How much in penalties?

Asked about 2 years ago - League City, TX

I did several jobs last year and was paid in cash. I am having remorse because I did not claim them on my tax return. I would like to come clean and claim it and pay the taxes due. The jobs totaled around $40,000, Does anyone has an estimation of what my penalties and interest will be?

Attorney answers (3)

  1. Steven Anderson Leahy

    Pro

    Contributor Level 17

    6

    Lawyers agree

    1

    Answered . Generally, the late filing penalty is 5% of the amount of unpaid tax per month the return is late, up to a maximum of 25% - interest is running at 3%

    I hope this helps.
    Respectfully,
    Steven A. Leahy
    www.chicagotaxteam.com

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-... more
  2. Christopher Michael Larson

    Contributor Level 19

    3

    Lawyers agree

    Answered . As Attorney Leahy points out, this depends more on your tax liability than your income. You will have deductions, and withholding. If you ended up owing nothing, there would be no penalty. The penalty is based on what was unpaid as of the filing date. Withholding from the year is considered paid on the filing date.

    Christopher Larson
    Insight Law

  3. Jonathan P Bochese

    Contributor Level 5

    2

    Lawyers agree

    Answered . If I understand properly you filed but didn't claim all of your Income. You will not be penalized for the underreporting providing you amend the return prior to the IRS catching.g your mistake. The new balance will be subject to penalties and interest as previously noted.

    This response is for informational purposes only and is not intended for legal advice. IRS Circular 230 Disclaimer:... more

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