3 Things To Do If You Have Missed The Tax Deadline
The tax filing deadline for the Year 2022-23 was 18th April. While it was important to adhere to IRS tax dates, but some people – despite their best efforts – have fallen behind in their taxes and have missed the tax filing deadline.
If you too are one of them, don’t panic; it’s not the end of the world. There are a number of ways to fix the situation.
Here are some steps you can take right now to do your taxes and get your refund:
File Your Return Quickly
The first thing you should do if you miss the tax filing deadline is to file your return as soon as possible. Waiting any longer will only make things worse and invite hefty fines and penalties from the IRS.
Remember, the IRS charges a failure-to-file penalty of 5% of the unpaid taxes every month. And this can go up to a maximum of 25%. So, the longer you wait, the more penalties and interest you accrue. That’s why, it’s best to file your taxes as soon as possible to minimize the financial impact.
Well, that’s not the only reason why tax filing is important. It is also essential because it may sabotage your chances of receiving a refund. There are a lot of refundable tax credits like Earned Income Tax Credit and Child Tax Credit that you are entitled to. Not filing your taxes can lead to missed refund opportunities for these credits. So, speak to an expert tax consultant and file your taxes quickly, for maximum benefits.
The good news is if you owe a refund, you would not have to pay the late filing penalty too!
Pay Your Taxes
If you owe taxes, it’s important to pay them as soon as possible. Pay them in full if you can, if not pay as much as possible to minimize your penalties and interest charges. The IRS offers several Payment Plan options to help you in paying your taxes. You can request a:
- Short-term payment plan Opt for this plan if you can pay your taxes within 180 days of the deadline.
- Long-term payment plan: With this plan, you can set up an installment agreement to pay off your tax debt over time. The maximum repayment term for an installment agreement is 72 months or 6 years. However, it is important to note that interest and penalties will continue to accrue on any unpaid tax balance until it’s paid in full.
- Installment agreement: You can even request an installment agreement if your taxes, penalties, and interest sum up to $50,000.
Hire A Tax Professional
If you’re overwhelmed or unsure of how to proceed, consider connecting with a tax professional. With absolute knowledge of the tax laws and processes, they can help you file your taxes correctly while averting/ minimizing your tax penalties and fines. On the way, they’ll also help you avoid costly mistakes that you may make during late filing.
A tax professional works with you to carefully understand your unique situation and the reasons for late filing, and can help you identify any deductions or credits you may have missed. They can help you e-file your return, set up a payment plan that suits your pocket, as well as determine the expenses that you can write off and penalty reliefs that you can claim.
At Quantum Tax Consultants, We’ve Got You Covered!
At Quantum Tax, we understand the stress that comes with late tax filing. With years of experience and knowledge of the latest tax laws, our tax consultants can help you seamlessly file your late taxes, with accuracy and expertise. We do all the math and leverage all the available tax credits and penalty reliefs so that you pay less and save more. Connect with us to file your taxes today and get the peace of mind you deserve.