The tax filing deadline has passed, and if you haven’t filed your taxes yet, you may be wondering what to do. Don’t panic! There are still options available to you. In this article, we’ll provide a comprehensive guide on what to do if you missed the tax deadline, including the consequences of late filing, available payment options, and strategies to minimize penalties.
Consequences of Late Filing
Filing your taxes late can result in penalties and interest charges. The penalty for late filing is 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%. The interest rate on unpaid taxes is currently 6% per year, compounded daily.
Example: If you owe $1,000 in taxes and file your return 3 months late, you will owe an additional $150 in penalties ($1,000 x 5% x 3). You will also owe interest on the unpaid taxes, which will continue to accrue until the taxes are paid in full.
Payment Options
Even if you can’t file your taxes on time, it’s important to pay as much as you can by the deadline to avoid further penalties and interest. You can make a payment online, by mail, or by phone.
Online: You can make a payment online using the IRS’s Electronic Federal Tax Payment System (EFTPS). You will need to create an account and provide your bank account information.
Mail: You can mail a check or money order to the IRS at the address listed on your tax return. Be sure to include your Social Security number and the tax year for which you are making the payment.
Phone: You can make a payment over the phone by calling the IRS at 1-800-829-1040. You will need to provide your Social Security number, the tax year for which you are making the payment, and your bank account information.
Filing an Extension
If you can’t file your taxes by the deadline, you can file an extension. This will give you an additional six months to file your return. However, it’s important to note that an extension does not extend the deadline for paying your taxes. If you owe taxes, you will still need to pay them by the original deadline to avoid penalties and interest.
To file an extension, you can use Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You can file Form 4868 online, by mail, or by fax.
Penalty Relief
In some cases, you may be eligible for penalty relief. The IRS may waive penalties if you can show that you had a reasonable cause for not filing your taxes on time. Reasonable causes include:
- Natural disasters: If you were affected by a natural disaster, such as a hurricane or flood, you may be eligible for penalty relief.
- Serious illness: If you were seriously ill and unable to file your taxes on time, you may be eligible for penalty relief.
- Military deployment: If you were deployed to a combat zone, you may be eligible for penalty relief.
To request penalty relief, you will need to file Form 843, Claim for Refund and Request for Abatement. You can file Form 843 online, by mail, or by fax.
Missing the tax deadline can be stressful, but it’s important to remember that there are still options available to you. By understanding the consequences of late filing, exploring payment options, and considering penalty relief, you can minimize the impact of missing the deadline. Don’t delay, take action today to resolve your tax situation.
So, You’re Late Filing Taxes, now what? | Incite Tax
FAQ
Can I just file my taxes late?
Can I do my taxes after April 18?
How late is too late to get tax return?
What is IRS penalty for late filing?
How much interest do you pay for filing taxes late?
The maximum late payment penalty is 25% of the amount due. You’ll also likely owe interest on whatever amount you didn’t pay by the filing deadline. You are also looking at a late filing penalty of 5% of the unpaid tax per month, plus interest. The maximum late filing penalty is 25% of the amount due.
What are the penalties for filing taxes late?
Filing your taxes late can result in a much higher failure-to-file penalty. You’ll be charged 5 percent of your unpaid taxes for every month that your return is late, up to 25 percent of the balance. For example, if you owed $1,000 in taxes, your failure-to-file penalty would be $50 per month, up to a maximum of $250.
What is the maximum late filing penalty?
The maximum late filing penalty is 25% of the amount due. Regardless of whether you are due a refund or owe, there is another point to keep in mind: If you never file your return, there is no limit on how many years the IRS can go back to assess and collect tax.
How do I file a past due tax return?
File all tax returns that are due, regardless of whether or not you can pay in full. File your past due return the same way and to the same location where you would file an on-time return. If you have received a notice, make sure to send your past due return to the location indicated on the notice you received.