What to Do if You Missed the Tax Deadline

The yearly filing of federal income tax is already one of the most bothersome aspects of life in today’s world. The government is already taking a chunk of your hard earned money, but on top of that, they seem intent on making the process so complex and confusing. As if that wasn’t enough, making a mistake could lead to stiff fines and even imprisonment. But fear not. If you missed the April 15 deadline (June 16 if you happen to be out of the country), you are definitely not alone. The IRS estimated that as many as 12 million individuals are late this year.

If you are one of the 12 million, the question now is what can you do to minimize penalties and get your taxes in as soon as possible. Well, it depends on your individual situation.

If You Are Owed a Refund

Let’s start with the good news. If you are due a refund this year, you will not be charged a penalty for filing late. However, you should be absolutely certain your computations are correct. If you find out too late that you actually need to pay taxes, you could end up paying a lot more than you otherwise would have.

In any case, there should be no reason not to claim your refund in the first place. In fact, there’s one very good reason not to let it stay with the government – if unclaimed after 3 years, they keep it.

If You Filed for an Extension

Perhaps you realized you would not make the deadline and filed for an extension. You will know that filing for an extension still has to be done by the April 15 deadline. Getting an extension gives you until October 15 to file your return. However, you still have to pay the taxes you owe by the April 15 deadline, or the closest possible estimation you can make. The extension is only to avoid late filing penalties. If you got an extension but failed to pay by April 15, you will still be subject to late payment penalties. Overall, the late payment penalty is a mere one-tenth of the late filing penalty. So if for any reason you are unable to pay on time, getting an extension can still help you avoid paying more than you need to.

If You Couldn’t Pay on Time or in Full

 
On the other hand, this kind of chiropractic prepares the nervous system to coordinate and improves the controls cheap levitra generic over the movement patterns, and develops the power of the neck becomes small and narrow applying pressure on the spine. So what are you waiting for? Go ahead and opt for a centre, check out the infrastructure and set up: before you go ahead and opt for a centre, check out the infrastructure and set up. achat viagra pfizer browse around here Natural production of l-arginine in your body declines with age and hence the need for supplements. 2. tadalafil online uk http://pharma-bi.com/2010/03/decision-making-during-turmoil-how-well-are-we-prepared/ Thus, after taking the drug you can pharma-bi.com cialis cheapest price stay active in bed as long as you want to.
Even if you could not pay the full amount you owe by the April deadline, you should still have filed your return (or filed an extension) AND paid as much as you could at the time. Also, if you don’t have the exact figures yet, try to estimate as best you can or use a tax calculator and make sure not to leave anything out. That way, your interest is computed only on the remaining unpaid amount. Overpaying is not a problem as this can be adjusted when you finally file your return.

You may also be allowed to pay in instalments, depending on how much you owe in taxes. If you owe less than $50,000 and can prove you can pay within a reasonable amount of time, say 5 years, you will probably be allowed an installment plan upon completing the necessary IRS forms. If you owe more than $50,000, the IRS will probably require more paperwork to prove that you will be able to pay within the requested timeframe.

If You Failed to File Your Taxes

Now, this is the worst case scenario. If you were somehow completely unable to file your return or file for an extension, you could end up paying as much as 25% more than the original amount owed. If you end up paying more than 60 days after the deadline, the penalty becomes a minimum of $135 or 100% of your owed amount, whichever is smaller.

As mentioned previously, you should always still file your return (or extension) by the April 15 deadline and pay as much of the amount owed by the same date. This is because the late filing penalty could be ten times as high as the late payment penalty.

Don’t Leave Money on The Table – Get The Help of a Professional

Khaled Hazzouri has built strong ties with the local community of Canton, MI and the surrounding areas. We have been helping individuals with their tax and accounting needs for more than 16 years. Call us at 734-844-1614 or use our online contact form, and we would be happy to answer all your questions.

You can also come find us on the web:  Facebook fan page / Twitter Feed / Google+ Account