Asked 8 months ago - League City, TX
FlagI 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?
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
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
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