What To Do When Filing Your Taxes Late
Have you missed the April 15th deadline to submit your taxes? Try not to panic. Instead, use that energy to instead come up with a plan to get your taxes filed…as soon as is feasible. Regardless of your tax situation, it is important to understand that filing as soon as possible is key to minimizing interest and penalties as well as further problems with the IRS.
Here are some quick facts about filing late that you should know as you plan to submit:
1. If you are due to receive a refund, you will not be penalized for submitting your tax return late. You have up to 3 years to file and still receive your tax refund. After that time, your refund becomes a “donation” to the IRS.
2. You can still e-file your return, even if you are filing it late. The IRS keeps the e-filing system open until October 15th each year.
3. If you owe taxes to the IRS and have yet to file, get your return filed as soon as you can, even if you cannot pay the full amount due. The penalty for filing late is much higher than the penalty for paying late. So, file now, even if you have to pay later.
4. If you are a US citizen living out of the country on tax day, or if you are in the military on duty outside the US, you are automatically given 2 months (until June 15th) to file your taxes without penalty. You should note, however, that if you owe taxes, the IRS will still charge interest after April 15th, just no penalties.
5. If you cannot pay what you owe to the IRS, there are still options. You may qualify for an offer in compromise where the IRS evaluates what you can actually afford to pay, or you may be able to pay using an installment agreement where you make payments over time. These options are most often granted the sooner you file.
6. Requesting an extension can be a very useful tool to give yourself extra time to file your taxes (this generally gives you 6 extra months). While you have time to file, if you owe the IRS, you are still responsible to pay what you owe. The IRS asks you to estimate what you owe them and go ahead and pay that to avoid having to pay interest.
7. Getting support may help you plan. If you are late filing your tax return, there is probably a very good reason. Your taxes may be complicated this year or you may be unsure about an aspect of your return. Partnering with a reputable tax relief company can ultimately save you money that you would otherwise be left paying in interest and penalties. A tax firm can help sort out any questions on your return and can often find areas of your return where you may be able to save additional money. Tax firms can also get this process done quickly so that you can file ASAP!
If you are looking for a reputable tax relief firm to assess your current tax situation, contact Success Tax Relief today. We can help you make the most of your refund or reduce the amount you owe, even if you’re filing late.