The IRS has the authority to impose penalties and interest on tax liabilities not paid in full by the deadline for the tax return. You need to know how the penalties are calculated, and what you can do to minimize them. If you have a refund, there is no penalty for filing late.

If you have a balance due on your tax return, the IRS will calculate a late filing penalty, a late payment penalty, and interest. The failure to file penalty is 5% per month up to a maximum of 25%. The failure to pay penalty is 0.5% per month, and interest is currently 6% per year.