What is the penalty for filing late as a sole proprietor

Modified on Fri, 31 Mar, 2023 at 9:34 AM

If a sole proprietor fails to file their tax return by the due date (including extensions), the penalty is usually 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax. If the return is more than 60 days late, the minimum penalty is generally the smaller of $435 or the amount of tax owed.