Penalties And Interest Paid To The IRS
The total penalty for the failure to file your income tax return and for failing to pay your taxes can be 47.5% (22.5% late filing, 25% late payment) of the tax owed. On top of penalties, there’s interest charges.
Interest charges for filing and paying taxes late
Interest is compounded daily and charged on any unpaid tax from the due date of the return (without regard to any extension of time to file) until the date of payment.
The interest rate is the federal short-term rate plus 3 percent. T