What are the penalties for filing taxes late?

In Virginia, there are penalties for not filing taxes on time. Depending on how much you owe, there may be a variety of consequences. First and foremost, there is a “failure to file” penalty of 5% of the unpaid taxes each month or partial month that the return is late, up to 25% of the unpaid taxes. On top of that, if you owe taxes and don’t file, the IRS will charge an additional “failure to pay” penalty of 0.5% of the unpaid taxes each month or partial month that the payment is late, up to 25%. In addition, Virginia’s Department of Taxation will assess interest on any unpaid taxes. If you are unable to pay the full amount, you should still file your return as soon as possible and pay as much as you can afford. You can do this either by check or by setting up an installment agreement with the IRS or Virginia Department of Taxation. Additionally, you can request that late fees, penalties, and interest be waived if you are experiencing economic hardship or other extenuating circumstances. If you owe taxes and don’t file, the consequences can be significant. Therefore, it’s important to always file your taxes on time, even if you can’t pay the full amount. Penalties and interest can add up quickly, and the longer you wait to file, the higher the cost of filing late.

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What are the penalties for filing taxes late?

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