Clients that Missed the Due Date

Do you have clients that did not file their tax returns or extensions by the due date?  If you have not done so already, warn them in writing that they need to file as soon as possible to reduce the penalties and interest that may apply to the late-filed returns.  The penalty for failure to file a return is 5% per month of the balance due (maximum of 25%).  This is addition to interest and the separate penalty for failure to pay the tax on time, which is ½% per month (maximum of 25%).