All taxpayers who missed this year’s April 18 tax-filing deadline should file as soon as possible. Taxpayers who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. For struggling taxpayers unable to pay their tax bill, the IRS has several options available to help.
Taxpayers who are owed a refund will not receive a penalty for filing late. People shouldn’t overlook filing a tax return. Every year, more than 1 million taxpayers overlook a tax refund.
Taxpayers who choose not to file a return because they don’t earn enough to meet the filing requirement may miss out on receiving a refund due to potential refundable tax credits. The most common examples of these refundable credits are the Earned Income Tax Credit and Child Tax Credit. Taxpayers often fail to file a tax return and claim a refund for these credits and others for which they may be eligible.
Again, there is no penalty for filing after the April 18 deadline if a refund is due.
Taxpayers who owe should file their tax return and pay any taxes they owe as soon as possible to reduce penalties and interest. An extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of Oct. 16. Penalties and interest apply to taxes owed after April 18 and interest is charged on tax and penalties until the balance is paid in full.
Filing and paying as much as possible is key because the late-filing penalty and late-payment penalty add up quickly.
Even if a taxpayer can’t afford to immediately pay the full amount of taxes owed, they should still file a tax return to reduce possible late-filing penalties. The IRS offers a variety of options for taxpayers who owe the IRS but cannot afford to pay. For more information see the penalties page on IRS.gov.
Taxpayers may qualify for penalty relief if they have filed and paid timely for the past three years and meet other important requirements, including paying or arranging to pay any tax due. For more information, see the first-time penalty abatement page on IRS.gov.
Don’t wait to get the refund that you are entitled to, or wait to pay and let interest and penalties accrue. Call us today to get started now!