2. Chapter 18 The Tax Compliance Process

3. Filing and Payment Requirements Due dates Individual: 4/15, extend to 10/15 Corporate: 15th day of 3rd month, extend to 15th day of 9th month Payments are due by ORIGINAL due date. Late payments TO IRS incur interest. Refunds paid by IRS within 45 days of filing do not carry interest.

4. Late-Filing and Late-Payment Penalties Penalty is a function of taxes OWED. If taxpayer is due a refund, there is no late filing penalty. Combined penalty = 5% of balance due per month late for 5 months, then 1/2 of 1 percent for up to an additional 45 months.