If you didn’t get your taxes done by the mid-April deadline, you still have a chance to submit an extension request by filing Form 4868 with the IRS. Doing so will give you more time to complete your taxes and avoid late fees or penalties.
If you are unable to submit your taxes by the extension deadline, there could be consequences. It is important to be aware of the potential consequences and to take steps to minimize them as much as possible. Make sure to contact the IRS and make them aware of your situation in order to avoid any additional fees or penalties.
Here, the experts behind the best professional tax software share what you need to know about what happens when you miss the extended tax deadline:
The IRS Takes Deadlines Seriously
The extended tax deadline is an important date for all taxpayers. It’s the date that the Internal Revenue Service (IRS) requires you to have filed your taxes by or face potential penalties and interest charges. But what happens if you miss the extended tax deadline?
First and foremost, it’s important to understand that the IRS takes deadlines seriously. If you miss the extended tax deadline, you could be subject to penalties and interest charges. The amount of these penalties and interest charges will depend on the amount of taxes due, the amount of time you’ve been late, and other factors.
If you’ve missed the extended tax deadline, the first thing you should do is file your taxes as soon as possible. Even if you can’t pay the full amount due, you should still file your taxes to avoid additional penalties and interest. The IRS typically charges a 5% penalty for each month (or part of a month) that your taxes are late. Additionally, the IRS also charges interest on any taxes that are due and unpaid.
Another important thing to keep in mind is that the IRS can also impose other penalties in addition to late filing and late payment penalties. These penalties can include failure-to-pay penalties, accuracy-related penalties, and fraud penalties. The amount of these penalties will depend on the severity of the violation.
It’s also important to note that the IRS may waive certain penalties and interest charges if you can show that the late filing or late payment was due to a “reasonable cause”. Examples of reasonable causes include death, serious illness, or natural disasters. If you can demonstrate that the late filing or late payment was due to a reasonable cause, the IRS may waive the penalties and interest charges.
Finally, it’s important to understand that the IRS may also take other collection actions if you fail to pay your taxes. This could include placing a lien on your property, garnishing your wages, or even seizing your assets.
Penalty for Missing a Tax Deadline
Generally, if you miss the filing due date or fail to file by the tax extension deadline, the IRS may charge a failure-to-file penalty. The penalty is based on your unpaid taxes, and the IRS charges 5% of your taxes due for every month or partial month your tax return is not filed. However, the maximum amount the IRS can charge you is capped at 25% of any taxes owed.
Let’s say you owe $10,000 in taxes. The IRS will charge you $500 for every month you don’t file your taxes. But the most the agency may charge you is $2,500.
It’s important to know that if you expect a tax refund and have yet to file your tax return, the IRS won’t charge you a penalty for late filing. But if you expect you may owe penalties for filing your tax return late, you should consider speaking with a tax professional before filing. You may be responsible for penalties plus interest.
Conclusion
It’s important to understand that missing the extended tax deadline can have serious consequences. If you’ve missed the extended tax deadline, it’s important to take action as soon as possible to avoid additional penalties and interest charges. Additionally, if you can demonstrate that the late filing or late payment was due to a reasonable cause, the IRS may waive certain penalties and interest charges. Of course, it’s better if you can avoid missing your tax deadline in the first place.
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