How much penalty will i have to pay if I file form 4868

Asked over 1 year ago - New York, NY

and owe around 20S in taxes for 2013

Additional information

i meant 20 K for 2012

Attorney answers (3)

  1. Robert J. Hoffman


    Contributor Level 11


    Lawyers agree


    Answered . It depends on whether you've withheld any taxes and whether you pay by April. If you request an extension to file through Form 4868, you still have to pay taxes on April 15, 2013. For taxes you owe that aren't paid by April 15, there can be interest, late payment penalties, and late filing penalties. The information can be found in the instructions to Form 4868, linked below.

    You will owe interest on any tax not paid by the regular due date of your return, even if you qualify for the 2-month extension because you were out of the country. The interest runs until you pay the tax. Even if you had a good reason for not paying on time, you will still owe interest. In 2012, the interest rate charged on underpayments was 3%.

    The late payment penalty is usually ½ of 1% of any tax (other than estimated tax) not paid by April 15, 2013. It is charged for each month or part of a month the tax is unpaid. The maximum penalty
    is 25%. The late payment penalty will not be charged if you can show reasonable cause for not paying on time. You are considered to have reasonable cause for the period covered by this automatic extension if at least 90% of your actual 2012 tax liability is paid before the regular due date of your return through withholding, estimated tax payments, or payments made with Form 4868.

    A late filing penalty is usually charged if your return is filed after the due date (including extensions). The penalty is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25%. If your return is more than 60 days late, the minimum penalty is $135 or the balance of the tax due on your return, whichever is smaller. You might not owe the penalty if you have a reasonable explanation for filing late.

    Robert Hoffman is a tax attorney licensed in California. The information presented here is general in nature and... more
  2. Richard Edmund Hawkins


    Contributor Level 16


    Lawyers agree

    Answered . Interest will accumulate. In most cases, non-payment is capped at 25%.

    There may be ways to waive the penalties; see a tax attorney or a CPA about this.

    I note that you listed bankruptcy. Generally, you have to be three years from the due date before a tax is dischargeable. Filing the extension would extend this date, too.

  3. Manuel Alzamora Juarez

    Contributor Level 20


    Lawyers agree

    Answered . I agree with my colleagues. Do yourself a favor and pay the tax. Even if you are going to be late filing a 4868. Best of luck.

    This answer is provided by California Accident Attorney Manuel A. Juarez, Esq., 510-206-4492. Abogado de... more

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