What To Do If You Missed the Tax Deadline
Did you miss the tax deadline? Don’t worry, there are still some things you can do to minimize the consequences. In this blog post, I’ll outline what to do if you missed the tax deadline and what penalties you may be facing. We’ll also provide some tips on how to get back on track with your taxes. So read on for all the details!
If you missed the tax deadline, the first thing you should do is file your return as soon as possible. The sooner you file, the smaller the late-filing penalty will be. Even if you filed an extension, that only protects you from filing your returns late, it does not protect you if you owe a balance. The extension is not an extension of time to pay. A lot of people get this confused.
So if you owe a balance and you didn’t file an extension, you’ll be subject to a late-filing penalty. The penalty is usually five percent of the unpaid taxes for each month (or part of a month) that the return is late, up to a maximum of 25 percent. If you’re more than 60 days late, you’ll also have to pay a minimum late-filing penalty.
In addition to the late-filing penalty, you’ll also owe interest on any unpaid taxes and the interest compounds daily.
If you’re having trouble paying your taxes, the IRS offers a few payment options. You can request an installment plan, which will allow you to make monthly payments towards your tax bill. You may also be eligible for a hardship extension, which will give you more time to pay your taxes. However, interest and penalties will continue to accrue during this time.
If you’re reading this, it’s probably because you missed the tax deadline. Don’t worry, you’re not alone. In fact, according to the IRS, around 20% of taxpayers miss the deadline every year. But that doesn’t mean you still can’t get your taxes done and get them done the right way.
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