The penalties for late filing of self-employment income and expenses vary based on the amount of tax due and the time it is late. Generally, if taxes are paid more than 60 days after the due date, the IRS may charge a penalty of 0.5% of the unpaid taxes for each month that the return is late, up to a maximum of 25%. Additionally, if the return is more than six months late, a minimum penalty of $435 or 100% of the unpaid taxes, whichever is smaller, may be imposed.