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The penalty for a late filed return is 5% of the tax due. This is for each month or fraction of a month. This is also a late payment penalty of 0.5% of the tax due. This would only be applied to months where the late file penalty is not applied. The maximum late file penalty is 25%. If the return is more than 60days late the penalty is $135 or 100% of the tax that is due.
It is very difficult to be treated as a securities trader. A number of factors are considered. Some of these include the number of days that you traded, the character of your trades. Court cases have determined that traders would take advantage of daily or short term changes in prices of securities.
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If you owe any taxes there would be penalties. You would need to file the return by November 15th to avoid another late file penalty.
The IRS matches information that they receive to your return. So the IRS would match the dividends income, interest income, and stock sales, wages, mortgage interest etc. If there are errors in matching the IRS will send you a notice with a proposed change. You would either agree to the change or dispute it and provide support for your position. For instance, you could provide an amended return.
If you do not file it is true that the IRS would prepare a tax return for you. It is known as a Substitute for Return. Yes, you are correct that they would assume the worst. The IRS would pick up all of the income, assume that the stock had zero basis and send you a notice. The IRS is under the US Treasury.