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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).
It's important to note that filing a tax return on extension has the downside of also extending the time your return is subject to an audit. So, if you filed your 2011 tax return on April 15, 2012, the IRS had until April 15, 2015, to audit it. However, if you had requested an automatic extension and filed Oct. 15, 2012, the IRS still has until Oct. 15, 2015, to audit your return and assess any additional tax and penalties due. Section 6501 also sets forth a second statute of limitations.