Watch Related Videos
comments
If you miss a tax deadline, you need to take immediate action in order to prevent penalties.
What Happens When You Miss the Tax Deadline?
If you miss a tax deadline and are not in a position to file your tax return, you should file for an extension as soon as possible. The extension pushes the deadline to file your tax return to October 15. All taxpayers are eligible for an extension on their tax deadline.
However, if you owe taxes, it is important to know that this money is still due on April 15. The extension only applies to filing your tax return and is not an extension of your tax payment deadline. The due date for your payment cannot be moved back. If you do not pay your tax bill in full or in part on April 15, penalties or fines can result.
If you have missed the tax deadline, filing electronically will probably be your best option.
What Happens If I Don’t File an Extension?
If you don’t file an extension, the IRS can impose interest and specific penalties. There are two types of penalties:
The failure-to-pay penalty consists of ½ of 1% of your unpaid taxes for each month the tax is not paid after the due date. This penalty also cannot be more than 25% of the unpaid tax, and if you can show the IRS reasonable cause for paying the tax in a timely manner by the due date, you will not have to pay it
There are also penalties for underpaying your taxes.
Depending on whether the IRS feels there was any criminal intent involved in your inaction, these penalties can run from small fines to criminal charges.
What Happens If I Can’t Pay?
You will still need to file your tax return or an extension of tax deadline because it tells the IRS that you know the situation and wish to resolve it. Once you have filed for the extension, you should communicate with the IRS to set up a payment plan to pay your taxes.
During this time, the IRS will continue to assess your fees and penalties, so you should pay as much as you can as soon as you are able to do so. The IRS can file a Notice of Federal Tax Lien if you do not pay your tax bill. This notice can damage your credit rating and lead to jail time.
Although it can be difficult, it is always best to let IRS know that you are working to resolve the issue and to work with the agency.
What Happens When You Miss the Tax Deadline?
If you miss a tax deadline and are not in a position to file your tax return, you should file for an extension as soon as possible. The extension pushes the deadline to file your tax return to October 15. All taxpayers are eligible for an extension on their tax deadline.
However, if you owe taxes, it is important to know that this money is still due on April 15. The extension only applies to filing your tax return and is not an extension of your tax payment deadline. The due date for your payment cannot be moved back. If you do not pay your tax bill in full or in part on April 15, penalties or fines can result.
If you have missed the tax deadline, filing electronically will probably be your best option.
What Happens If I Don’t File an Extension?
If you don’t file an extension, the IRS can impose interest and specific penalties. There are two types of penalties:
- Failure to file penalty, which is assessed at 5% per month
- Failure to pay penalty, which is assessed at 0.5% per month
The failure-to-pay penalty consists of ½ of 1% of your unpaid taxes for each month the tax is not paid after the due date. This penalty also cannot be more than 25% of the unpaid tax, and if you can show the IRS reasonable cause for paying the tax in a timely manner by the due date, you will not have to pay it
There are also penalties for underpaying your taxes.
Depending on whether the IRS feels there was any criminal intent involved in your inaction, these penalties can run from small fines to criminal charges.
What Happens If I Can’t Pay?
You will still need to file your tax return or an extension of tax deadline because it tells the IRS that you know the situation and wish to resolve it. Once you have filed for the extension, you should communicate with the IRS to set up a payment plan to pay your taxes.
During this time, the IRS will continue to assess your fees and penalties, so you should pay as much as you can as soon as you are able to do so. The IRS can file a Notice of Federal Tax Lien if you do not pay your tax bill. This notice can damage your credit rating and lead to jail time.
Although it can be difficult, it is always best to let IRS know that you are working to resolve the issue and to work with the agency.
