IRS Penalties

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I extended my return, why is the IRS assessing penalties and interest?

The answer is that since you extended your return, you are not being penalized for late filing, instead you are being penalized for late payment.

Extensions only extend the timing for filing a return, not for payment of your income taxes. The IRS expects you to pay your taxes throughout the year as you are making your money. They also expect that if you extend your return that you will pay any remaining taxes that you owe for the prior year with that extension, so by no later than April 15.

09/09/2019
By: Gary Grottke, Quality Back Office LLC