So, you missed the deadline to file your taxes. Life is busy, and sometimes the time slips away from you. It’s okay! Here are a few things you need to know if you’re filing your taxes late this year.
Late Filing Penalties
First off, if you don’t owe a tax balance, you have nothing to worry about. That means that if you’re getting a refund and don’t owe the IRS anything, there isn’t any penalty for filing late.
Of course, that doesn’t mean that you should wait as long as you like to file. Remember, the sooner you file, the sooner you get your refund. There are certain elections that must be taken before the deadline, as well, so make sure you keep that in mind.
But what happens if you do owe the IRS and end up filing late? You’ll be charged a penalty for each month past the April 15th deadline that you don’t pay the amount owed. You’ll also begin to accumulate interest on the amount that hasn’t been paid by April 15th, and this will add to your total tax debt.
Not thinking about filing at all? You might want to reconsider. If you never file a return, then there is no statute of limitations on how far back the IRS can go to audit, assess, or collect your taxes. Even if you end up owing, it’s in your best interest to file.
What If I Can’t Pay?
There are a few options for taxpayers who can’t pay the amount they owe. For example, installment agreements are common for settling large debts.
However, when you need access to these kinds of payment options for your past-due amount, never attempt to represent yourself in front of the IRS. Instead, let Taxation Solutions, Inc. help you deal with the IRS and set up payment options to get your accounts back on track. Give us a call today for a consultation!