Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
After filing a late return with tax due, we received form CP14.
The penalties assessed are higher than I would have expected.
Tax owed on return = $423
Estimates paid = $265
Tax due and paid when filed (late) = $158
The interest charges are detailed and understood.

But under "failure to file" section it says "we assess a penalty for filing your return late for each month or part of a month the return is late, up to 25% of the amount required to be shown on the return". Does this mean 25% per month, or 25% total? 25% total would only be $106. The amount of the penalty is listed as $158, which is the same as the tax due. Action date, months late, unpaid amount, and monthly rate are all listed as NA in this section. Amount due on the CP14 = $158 (the penalty) + interest. It is surprising to me that they would double your tax for filing late.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.