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If You Neither File nor Pay

The cap on total penalties works out to 47.5% of the tax due—22.5% for late filing and 25% for late payment—if you let Tax Day pass by and don’t request an extension from the IRS to file your return in October, and if you owe anything on that return.2

The failure-to-pay penalty will keep on growing up to 25% even after the failure-to-file penalty maxes out.

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