How can I avoid penalties when filing taxes in Washington? Follow these tips

Tax season has arrived.

While tax season is generally stressful, the worst-case scenario is finding out you’ve been fined by the Internal Revenue Service.

Want to avoid a penalty from the IRS?

Here’s what you need to know when filing in Washington state this tax season:

When do I have to file my 2025 tax return?

In Washington state, the deadline to file both state and federal income tax returns for the 2025 tax year is Wednesday, April 15.

Need more time? You can request a six-month filing extension, but you’ll still need to pay any taxes you owe by the April deadline to avoid penalties and interest.

How can I avoid a tax penalty?

According to the IRS, you may owe a penalty if you don’t:

• File your tax return on time
• Pay any tax you owe on time and in the right way
• Prepare and file an accurate return
• Provide accurate and timely filed information returns

A failure-to-file penalty occurs when you do not file your tax return by the April 15 deadline, unless you file for an extension.

You can expect to pay an underpayment penalty if you pay less than 90% of your estimated total tax, or don’t have enough withheld from your wages throughout the year, according to financial media website Investopedia.

The best way to avoid a tax penalty is making sure you’ve filed your return on time, and paid as much as you can.

“The No. 1 thing I like to tell people is file your tax return, even if you can’t pay anything,” IRS spokesperson Stacey Engle told Indiana Public Media. “And if you don’t think you’re going to make it on time to have it prepared by April 15, file for an extension.”

How can I tell if I owe a tax penalty?

If you owe a penalty to the IRS, you can expect to get a notice or letter, the federal agency said.

“The notice or letter will tell you about the penalty, the reason for the charge and what to do next,” the IRS said, including instructions for paying the balance due.

Follow the IRS instructions for Form 2210 to see if you’re in underpayment status.

How much do tax penalties cost?

The IRS calculates underpayment penalties at 0.5% of the amount owed per month, according to Investopedia, with additional interest.

“We may charge interest on a penalty if you don’t pay it in full,” the IRS said. “We charge some penalties every month until you pay the full amount you owe.”

If you set up a payment installment agreement with the IRS, this penalty is reduced to 0.25% while the installment is in place.

Failure to file penalties are 5% of the unpaid tax for each full or partial month your return is late, according to Turbo Tax.

This penalty is waived if you request an extension, which gives you an additional six months.

Can I get my tax penalty waived?

The IRS is willing to waive penalties for people who make tax filing mistakes, as well as those who underpay for reasonable causes.

“If you didn’t file on time or pay the tax you owe due to extenuating circumstances, the IRS might agree to waive your penalties,” Turbo Tax said. “Examples of reasonable cause might include a house fire, natural disaster, illness or an immediate family member’s death.”

The IRS has extended tax deadlines for people and businesses in Washington state “affected by severe storms, straight-line winds, flooding, landslides and mudslides” in December, McClatchy Media previously reported.

Those taxpayers have until Friday, May 1 to file federal tax returns and make tax payments, the IRS said.

You may also be eligible for penalty abatement if it’s your first tax penalty.

Reduced penalty options are assessed on a case-by-case basis.

According to Investopedia, reductions may be offered to taypayers who changed their filing status from single to married filing jointly, as well as for people who generate more significant income later in the calendar year.

What should I do if my tax penalty is incorrect?

If you believe the IRS issued your tax penalty in error, you can use Form 843. Follow the IRS’s instructions.