What Is the Penalty for Late Taxes?

Late taxes are two words that can have a profound impact on your finances. If you feel like you're drowning and don't know where to turn, our team is ready to dive in and work through this issue with you.

What Is the Penalty for Late Taxes?

Failure to File Penalty

Late taxes are always bad news, whether it's late to file or late to pay. If you don't file by the tax filing deadline, you might be looking at a penalty. This penalty is usually higher than the penalty you can get from not paying your taxes on time, so even if you aren't able to pay your owed taxes by the due date, you should absolutely still file on time.

If you're concerned about filing your taxes and not being able to pay, there are multiple options to help you, including installment agreements and loans. On the other hand, you can start accruing penalties for late filing as soon as the day after the filing deadline.

Additional Failure to File Penalties

Unfiled tax returns can result in wage garnishment, which will allow the IRS to take your money or property. In some cases when you fail to file your tax returns, the IRS may consider it tax evasion which could land you jail time or a very hefty fine.

You may also be issued an SFR. This is a substitute for the return, so you will be taxed with zero exemptions or deductions. Refiling after an SFR significantly increases your audit risk. In other cases you'll have to pay the failure to file penalty mentioned earlier.

Failure to Pay Penalty

Not paying your taxes on time usually results in a failure-to-pay penalty. Like the late filing penalty, the late payment penalty can also start accruing the day after your payment deadline. If you think you're going to be late in paying your taxes, act sooner rather than later.

You can request a time extension, which could drastically reduce or completely remove the penalty so long as you show a reasonable cause for why your payment will be late. At this time, you'll be given a new, extended due date that you will have to pay your taxes by.

IRS Bank Levies

This involves the IRS seizing funds from your bank account to pay what you owe on taxes. It does this by either freezing or placing a hold on the account, after which you have 21 days to pay the IRS before the bank does it for you.

A levy also allows the IRS to legally seize your property in order to settle your tax debt. In addition to being able to take money from the bank and potentially your property, it also allows the IRS to sell vehicles and garnish wages. Before you reach the point of an IRS levy, reach out to our tax professionals. We're ready to answer all of your questions and help you find the best solution.

IRS Tax Liens

If you fail to pay income taxes or other taxes, a tax lien may be imposed upon your personal or real property. It allows property, or money from the property owner, to be taken.

When things get this serious, many people go into "flight" mode, trying to ignore the problem and buy time. Ignoring the call of the IRS isn't going to make them disappear, but there are options out there to help you, and we've dedicated our careers to finding them.

We Can Help You Fix Your Tax Problems and Avoid Audit

We communicate directly with the IRS through email, which is faster than waiting on the mailman. We've been in business since 2004, offer a money-back guarantee, and have a team of tax resolution attorneys always at the ready to help you.

Assistance With Payroll Issues

If you're an employer, you know the importance of making your federal payroll tax payments, as well as filing your informational returns. You have to provide employees with 1099 or W-2 reports, detailing the amounts paid and withheld. When a business starts to struggle, payrolls being filed or paid late becomes more likely, but it's one of the worst things that can happen to a struggling business.

Due to increasing tax collection efforts towards businesses, the IRS could potentially seize assets or shut the business down entirely if they feel it's necessary. Our professionals are very experienced in dealing with payroll and corporate taxes. Before it reaches the point of catastrophe, let us help your business stay afloat!

Audit Protection

While audit protection isn't the same as immunity, it offers the peace of mind that our dedicated team is going to protect you from the stress and potential dangers of dealing with state tax agencies or the IRS on your own.

We will be on your side, with all of the experience and know-how that we've accumulated over the years. We'll make sure that if things go south, auditors will be held accountable and you won't be asked to pay more money than you legally owe. We'll bring your amount of money owed to as low a number as possible, and get as many fines waived as we can.

No Stone Left Unturned

Every route of action and possibility will be explored to get you the most savings and protection possible. We'll check any requested audit changes for accuracy; both legal and mathematical. We'll help you organize your information and get the issue resolved as quickly as possible. A well-rounded approach, fueled by dedication, experience, and knowledge, is something we take pride in.

We Can Help You Determine if You Qualify for CNC Status

If you qualify for currently not collectible status, you'll be able to remain tax compliant and not worry about the IRS taking enforcement action. That'll give you some time to bounce back from a financial setback. This can be a good option for those who aren't able to afford an installment agreement.

If your income has fallen below the point of being able to support your allowable living expense, you may qualify for CNC status, and we can help you apply for it. Once accepted, IRS collection activity will be temporarily suspended until your financial situation has improved.

Need to Amend or File Missing Returns? We Can Help

If you have some old tax returns you haven't been able to file, we can help you get back on track with our proven process.

First, we'll confirm which years need to be either filed or amended. Whether that's one year or ten, we know there are many reasons taxpayers struggle to file, and we're here with all of the tools and support needed to get you caught up, along with any allowable deduction we can find for you.

When Do You Need to Amend?

It's important to get in compliance as quickly as possible; don't delay on this! Some clients are embarrassed or overwhelmed, but with our understanding team at the ready, there's no need to be either.

Even if you think you've missed out on some deductions, we can help with that too! In short, if you've noticed you claimed an incorrect filing status, forgot to claim the taxable income, claimed income you shouldn't have, or need to remove or add a dependent, we can help you correct that.

Our Other Services

In addition to everything listed above, we offer the following services as well:

  • Innocent spouse relief
  • Offer in compromise
  • Penalty abatement
  • Release of IRS Wage Garnishment
  • And more!


Our no-hassle tax filing will make sure your taxes are done right, so you can rest easy. Regardless of whether you need help or just want someone professional to file your taxes, we're ready to tackle this with you. Reach out to Tax Alliance in Santa Ana, CA, today to get your taxes back on track!

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Efficiency through Automation!

Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!

Our Money Back Guarantee!

If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!

Price Match Guarantee

You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.

Call Us