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You will probably face two types of penalties: one for not filing or efiling a tax return or extension on time, and one for not paying your taxes on time. The failure-to-file penalty is 5% of your balance due for every month (or part of a month) in which your taxes go unpaid.he failure-to-file penalty amount will be reduced by the amount you owe for failure-to-pay. The maximum amount you will owe for filing late will be 25% of your unpaid taxes. If you file more than 60 days late, your minimum failure-to-file penalty will be 100% of your unpaid taxes or $135 (whichever is smaller).
Here's what to do. If you need more time to complete your 2014 business tax return, you can request an extension of time to file your return. However, even with an extension, you must estimate how much you owe (if you owe) and send in that amount by the due date. Otherwise, the IRS can invalidate your extension. Most business tax returns can be extended by filing Form 7004: Application for Automatic Extension of Time to File by the original due date of the return.