What If I Miss the Tax Deadline?

OlufisayoJanuary 30, 20200970 views

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If April 15th passed you by and you forgot to file your taxes, you need to take action. You can go online to talk to a credentialed tax expert if you’re in Tampa or any other USA city. Individuals who have not filed but are owed a refund don’t need to worry about late fees. However, individuals who owe the IRS money need to file their taxes as soon as possible. Find out the consequences of missing your deadline.

Missed Deadlines and People Who are Owed Refunds

As previously mentioned, there’s no penalty for individuals who don’t owe anything on their taxes. If you’ll be receiving a refund, the government will keep your money until you claim it. But there’s a limit to their patience. You only have three years from the missed deadline to fill out your tax return and receive your refund.

There is a good reason to file sooner rather than later. If you are receiving a Premium Tax Credit to pay for some of your insurance, a failure to file your taxes could affect your credit. To avoid losing your money, you should speak to a tax professional and file as soon as possible.

Missed Deadlines and People Who Owe Money

The situation is completely different for those who owe money to the IRS. Unfortunately, the government doesn’t like it when people owe them money. They will penalize you for being late on your deadline. The cost of your penalties can quickly add up, leaving you owing much more than you may have imagined.

It’s important to realize that it’s too late to file for an extension after the deadline has passed. If you want an extension, you must file for it before the deadline. That said, you can still file late for the year. And the sooner you file, the less money you’ll need to pay in late fees.

The Late Fees

Typically, the IRS charges late fees on a monthly basis. For every month you don’t file your taxes, you get charged. For those who have filed but didn’t pay their taxes, the late fee is .5% per month until the tax is paid off. There is a maximum late payment penalty of 25%. Additionally, you’ll be charged interest on the amount that was

If you didn’t file at all, you’ll also have a late filing penalty of 5% each month plus interest. Once again, there is a maximum penalty of 25%. There is no statute of limitations on unpaid taxes, so your debt will haunt you forever. For example, the IRS could collect your unpaid taxes 20 years after a missed deadline.

How to Pay a High Tax Bill

If the penalty makes your tax bill too high, you do have some options for making payments. You could pay with a credit card, have an installment agreement, or make an offer in compromise. However, you should work with a tax professional to determine your best option.

How to Handle the Missed Deadline

If you don’t want to pay thousands of dollars in penalties, you need to file your taxes as soon as possible. By working with Premier Tax Service, you can get your taxes done in a timely manner. You can also learn more about your options for paying back your taxes.

No one should be left to deal with the IRS alone. For the best outcome, you need an expert negotiator by your side. Don’t hesitate to call us and resolve your tax problems.

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