Tax season may be highly stressful, especially if you have a complex tax position. You run the danger of missing the income tax deadline if, for whatever reason, you fail to come ready with the correct paperwork. Then, what do you do?
If you miss the income tax deadline, we’ll go over what you need to know, including the resulting penalties. A CPA in Bellevue, WA, will offer helpful guidance on how to prevent having your earnings damaged by the IRS because of unpaid taxes and what to do if you miss the income tax deadline.
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Steps to take next if you miss income tax deadline
First of all, do not freak out. If you missed the income tax deadline, follow the instructions below:
- Even if the due date has gone, file your income taxes immediately. If you qualify for an IRS refund, you might be eligible to avoid any fines.
- If you owe taxes, pay as much as you can to avoid fines and interest.
- To prepare and submit taxes online, use electronic filing options like the IRS Free File.
Is it still possible to ask for an extension beyond the tax deadline?
Unfortunately, after the tax deadline has passed, you are unable to request an extension. All requests for extensions must be submitted by the usual return deadline. Some U.S. taxpayers are, however, automatically granted extensions by the IRS of a maximum of 180 days to file and pay taxes that are due without incurring penalties or interest. These include people living abroad, serving in areas of war, or those affected by a disaster that the federal government has declared.
If you missed the deadline, can you still electronically file my taxes?
If you miss the income tax deadline, you can still file your taxes electronically. After the tax deadline, taxpayers are still permitted to file their taxes with the IRS electronically. To reduce penalties and interest, pay whatever you can as quickly as possible if you owe taxes.
If you file your taxes after the deadline, will you be penalized?
Yes, if you file your taxes after the deadline, the IRS will charge you fines. In simple terms, these fines serve as financial disincentives to make sure that taxpayers file and pay their taxes on time. Note that you will not be penalized for submitting late if you qualify for a refund.
What is the penalty for late tax filing?
The IRS assesses a penalty based on the percentage of your taxable income if you file your taxes after the deadline. Usually starting at 5% every month, this penalty can increase to a maximum of 25%. However, there will be a penalty of either $485 or 100% of the outstanding tax, whichever is smaller, if you file your returns over sixty days after the due date.
What penalties apply if I file and pay my taxes after the deadline?
For each month or portion of a month when taxes are not paid, they charge a penalty of 0.5% to 25% of the outstanding taxes. On the other hand, the late-payment penalty for that month is deducted from the late-filing penalty if the failure to make payments and failure to file sanctions are applied jointly.
What occurs if I pay my taxes on time but file my return later?
You will be in a better situation than if you had not paid at all if you file the tax return late but settle your taxes on time. Keep in mind that the IRS imposes a late filing penalty depending on the total amount of taxes that have not been paid. Therefore, this penalty could be zero if your taxes have already been paid in full.
Can I get my tax fines waived?
Yes, in some instances, the IRS can provide penalty abatement. If you have a record of good tax compliance, you may be eligible for an abatement mainly for penalties related to failure to file, delay to pay, or failure to deposit. If you were unable to pay your taxes because of valid reasons outside of your control and not in bad faith, you might also be eligible.
