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Story summary
- Missing a tax deadline triggers penalties from the Internal Revenue Service (IRS).
- The failure-to-file penalty is 5% of unpaid taxes per month.
- The failure-to-pay penalty is 0.5% per month.
- Interest on unpaid balances compounds daily and is not capped.
- Taxpayers can mitigate these issues by filing promptly, setting up payment plans, or seeking professional help.
