If you have missed the April deadline to file your taxes, there's no need to panic about what happens if you miss the tax deadline. You still have options to get back on track and fulfill your tax obligations. In this guide, we will provide an overview of the potential late filing penalties and fees and offer guidance on what to do after the deadline to avoid or minimize them. If you know someone struggling this tax season, please share these helpful tips with them.
1. What Happens if I Miss the Tax Deadline?
The tax filing deadline for this year is April 18, 2023. If you are owed a refund from the IRS, you won't face penalties for being late. You have three years to file and claim your refund. However, you may be subject to failure-to-file or failure-to-pay penalties if you owe the IRS. Additionally, the IRS charges interest on these penalties. It's essential to file and pay your taxes as soon as possible to minimize the amount you owe. If you missed the April deadline, you can request an extension until October 15 to avoid certain penalties.
2. If You Miss the Extended Deadline
Failure to file for an extension or missing the extended deadline can result in IRS penalties. The maximum penalty for both failure to file and failure to pay is 25% of your unpaid taxes. If this is your first time making a late tax payment, you may be eligible for a penalty waiver under the first-time abate policy.
3. If You Can't Afford to Pay
If you find yourself unable to pay the taxes you owe, it's crucial to communicate with the IRS. You have options to work out a payment plan, allowing you to make installment payments on your tax balance over time.
Additionally, you may qualify for the IRS's offer in compromise program, enabling you to settle your tax debt for less than what you owe. Tax season can be stressful, but remember that assistance is available. For a comprehensive collection of IRS forms, access a wide range of forms to meet your tax-related needs. If you have any questions or would like to discuss other areas of your financial planning, contact us today.
Understanding the Consequences: Late Filing Penalties and Fees
Navigating the aftermath of what happens if you miss the tax deadline can be overwhelming, but understanding the potential consequences and taking appropriate action is crucial. Remember, if you find yourself in this situation, take a deep breath and explore your options. By addressing your late filing promptly and exploring strategies to minimize late filing penalties and fees, you can work towards resolving any tax issues effectively. If you need guidance or have specific questions about what happens if you miss the tax deadline or the implications of late filing penalties and fees, contact us. We're here to help you navigate the complexities of your tax obligations and assist you in achieving financial peace of mind.
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