If you’re looking at the date, you’ll notice, the tax filing deadline for this year has come and gone. If you missed it, there’s still hope! You can file after the deadline, but you must act quickly to minimize the penalties.
Here’s a few things the team at Broussard Poché, LLP want you to keep in mind if you missed the tax deadline.
- First of all, you still have to file. You cannot just close your eyes and hope your taxes will go away. For people expecting a refund, there is good news. You will not be penalized for filing late. However, you probably won’t be able to collect a refund if you file the return more than three years after the deadline.
- If you owe the IRS, filing late comes with a few more consequences. Starting on day one, the IRS will increase the amount you owe with monthly interest charges–until you pay your tax debt in full. The monthly penalty accumulates as well. They will increase the charge by 5% for every month you are late. Plus, there is a “failure-to-pay” penalty. This penalty will up your tax bill by 0.5% each month.
- There is a ray of light for some facing the “failure-to-pay” penalty. If the amount of tax you still owe on a late return is not more than 10% of your total tax bill for the year, the IRS can waive the penalty. Of course, you can avoid these penalties altogether by filing on time or applying for an extension by the deadline. If you filed a form 4868 by the filing deadline, you will be OK. That will give you 6 more months to file. You still owe money by the April deadline, so start paying what you can as soon as possible. You will still be subject to the “failure-to-pay” penalties but not the interest charges.
If you need help filing after the deadline, contact a tax professional with Broussard Poché, LLP right now. We can get an extension filed and advise you on the best way to start paying what you owe.