Missed Tax Deadline–Late Filing Tips
If you missed the tax deadline or didn’t file a tax return or an extension, you need to take action now! Here are some tips from IRS Tax Tip 2015-62 for taxpayers who missed the tax filing deadline:
- File as soon as you can. If you missed the tax deadline owe taxes, you should file and pay as soon as you can. This will stop the interest and penalties that you will owe. IRS Direct Pay offers you a free, secure and easy way to pay your tax directly from your checking or savings account. You can also use a credit card. There is no penalty for filing a late return if you are due a refund. The sooner you file, the sooner you’ll get it.
My note on this: the failure to file penalty is 5% of the tax due per month for up to 5 months; that’s 25%! The failure to pay penalty is 0.5% per month. In either case, compounded interest applies. What if they both apply? It’s clearly better to file a return and not be able to pay, then simply not filing anything (assuming you did not extend). Even if you did extend, the tax was due April 15, 2015. Need Help?
- Pay as much as you can. If you owe tax but can’t pay it in full, you should pay as much as you can when you file your tax return. IRS electronic payment options are the quickest and easiest way to pay your taxes. Pay the rest of the tax you still owe as soon as possible. Doing so will reduce future penalties and interest. Don’t know how much to Pay?
- There are several options to pay over time. If you need more time to pay your tax, you can apply for an installment agreement with the IRS.
- A refund may be waiting. This is when the IRS pays you! If you are due a refund, you should file as soon as possible to get it. Even if you are not required to file, you may still get a refund. This could apply if you had taxes withheld from your wages or you qualify for certain tax credits. If you do not file your return within three years, you could lose your right to the refund. Need help?
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