We promise. This is our last post of the tax season, 2016. It’s information about filing late and paying penalties, so we’re hoping most users of SmallBusiness.com don’t need it. 


First, the good news for some of you | If you are due a refund there is no penalty if you file a late tax return. (It’s not 100% good news because you could have been using that money if you had filed

Second, the not good news for some of you | If you owe tax, and you failed to file and pay on time, you will most likely owe interest and penalties on the tax you pay late. To keep interest and penalties to a minimum, you should file your tax return and pay the tax as soon as possible.


The IRS Wants You to Know These Things About Penalties

Two penalties may apply | One penalty is for filing late and one is for paying late. They can add up fast. Interest accrues on top of the penalties.

Penalty for late filing | If you file your 2015 tax return more than 60 days after the due date or extended due date, the minimum penalty is $205 or, if you owe less than $205, 100 percent of the unpaid tax. Otherwise, the penalty can be as much as five percent of your unpaid taxes each month up to a maximum of 25 percent.

Penalty for late payment | The penalty is generally 0.5 percent of your unpaid taxes per month. It can build up to as much as 25 percent of your unpaid taxes.

Combined penalty per month |  If both the late filing and late payment penalties apply, the maximum amount charged for the two penalties is 5 percent per month.

File even if you can’t pay |  Filing on time and paying as much as you can will keep your interest and penalties to a minimum. If you can’t pay in full, getting a loan or paying by debit or credit card may be less expensive than owing the IRS. If you do owe the IRS, the sooner you pay your bill the less you will owe.

Payment Options | Explore your payment options on our website at IRS.gov/payments. For individuals, IRS Direct Pay is a fast and free way to pay directly from your checking or savings account. The IRS will work with you to help you resolve your tax debt. Most people can set up a payment plan using the Online Payment Agreement tool on IRS.gov.

Late payment penalty may not apply | If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 18 due date.

(via: IRS.gov)

12
It’s Tax Day: What Are Your Chances of Being Audited? | 2016

The odds of you being audited depend on your income.

13
Five Things the IRS Wants You to Know About Filing a Tax Extension | 2016

While you can’t delay paying your taxes, here’s how to delay filing your return,

14
Home Office Tax Deduction Resources From the IRS | 2016

If you use part of your home for business, you may be able to deduct expenses for the business use of your home.

15
Owning a Small Business and 14 Other Red Flags Increasing The Odds You’ll be Audited

There’s no sure way to avoid an IRS audit, but here are things the IRS looks for in selecting returns they consider.

16
How to Keep From Overpaying Unemployment Insurance Taxes

Each year, many businesses pay more in unemployment insurance taxes than they should. Here is how to avoid being one of those companies.

17
How to Save Tax and Personal Financial Data Without Having Your Identity Stolen

The IRS recommends you keep tax forms and supporting documents a minimum of three years to a maximum of seven years.

18
How Much Tax You’ll Pay on Your $1.3 Billion Powerball Winnings

Before you start plans to expand your business, you may want to sit down with a team of your most trusted legal, tax and financial advisors.

19
A Dozen Business-Related Tax Incentives in the 2016 Budget, Spending Bill

The House of Representatives overwhelmingly passed the first of two bills that will avoid a government shut-down and make permanent a long list of tax provisions

20
A Small Business Year-end Tax Tip That Helps Throughout the Year

This tax calendar from the IRS that can be viewed online or via your computer or mobile device.

21
Six Tax Tips for Year-end Charitable Giving | 2015

Advice from the IRS about different types of year-end giving and how they can impact your taxes.

22
Small Business Tax Day Countdown: A New Taxpayer Bill of Rights

Adopted by the IRS in 2014, the Taxpayer Bill of Rights applies to all taxpayers, individuals or businesses, in their dealings with the IRS.

23
Small Business Tax Day Countdown: Good News, Bad News on How-to Find a Good Tax Preparer

How to find a good tax advisor and tax return preparer for your small business.

24
Affordable Care Act Tax Information From the IRS

The IRS provides a wide range of resources (all are published as PDFs) related to the Affordable Care Act and taxes.

25
Small Business Tax Day Countdown: Last Minute Tax Help You Can Find on the IRS.gov Website

Avoid long waits on-hold or in-line. The IRS.gov website has answers to many of your tax questions, printable tax forms and publications and more.

26
You Must Pay Taxes on Time, but Here are Ways to File an Extension for Turning in Your Tax Forms

Three ways to request an automatic extension of time to file your U.S. individual income tax return. (But your taxes are still due on time.)

27
Small Business Tax Day Countdown: While Tax Preparation is Rarely Free, Online Tax Filing Is

For small business owners and self-employed, the price at a free online tax filing service isn’t free. The price begins at $104.99 using TurboTax, for example.

28
Rollover Business Startups (ROBS) are Risky, May Violate Tax Laws

Use of a complex strategy to transfer IRA savings into funds to acquire a startup is not only risky, the IRS is challenging it.

29
New Ways States are Finding Small Business Tax Evaders

Following the IRS lead at the federal level, states are looking for ways to find small business owners and the self-employed who are evading state tax laws.

30
Tax-free Commuter (Even by Bicycle) & Parking Expenses

Even if your company does provide parking and commuting expenses as a benefit, they can be paid for with pre-tax money.

31
Add Up Your Healthcare Premiums With This ACA Tax Subsidy Calculator

The Kaiser Family Foundation created this calculator to illustrate health insurance premiums and subsidies for people purchasing insurance on their own in new health insurance exchanges