If you missed the extended tax deadline, don’t panic! There are still some things you can do to minimize the damage. In this post, we’ll discuss what to do if you missed the tax filing extension deadline and what penalties you may face. We’ll provide tips for getting back on track with your taxes. So, don’t worry – you’re not out of luck yet.
What is an income tax extension?
If you missed the tax extension deadline, you can file for an Income Tax Extension through the IRS website or by mail. While filing for an extension may be free, it is crucial to meet the deadline or risk penalties.
Not filing for an extension will result in a 10% late payment penalty and interest.
Tax extension deadline versus extension of payment
The first thing to know about filing for an extension is that it is different from an extension of payment. Although the tax extension extends your tax deadline, it does not extend the due date.
While October 17 is the last day for most people to file a Form 1040 to avoid the late filing penalty, those who still need to file should do so as soon as possible. If they have their information ready, there’s no need to wait.
The payment deadline remains the same. You must still pay the taxes due by the deadline or face penalties. The IRS can extend the due date by up to three months.
Be aware of any penalties
In addition to the late payment penalty, you can also incur failure-to-file penalties. This penalty is based on the amount of tax you owe. 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. For example, if you owe $10,000, the IRS can charge you up to 25% of the amount. This fee can be up to $2,500.
Are you eligible for an automatic extension?
An income tax extension will help you file your return on time. If you missed the extended deadline, you may be eligible for an automatic extension if you are a member of the military or a qualified disaster. While an extension will give you more time to file your return, it will not give you more time to pay your taxes.
If you didn’t pay at least 90% of your tax due on the April deadline, you may face a higher late payment penalty. The late payment penalty for failing to pay taxes is 0.5% per month, with a maximum of 25%. It is also important to note that the tax agency also charges interest on the penalty.
Reasons people file for tax extensions
There are a number of reasons that people file for extensions on tax returns if they missed a deadline. But the two most common reasons end up being time and money.
Money
One of the main reasons is a lack of money. However, that is not a valid reason to file for an extension. Instead, you should file your tax return on time, ask for a payment plan, and cut back on spending.
Also, you may want to decrease the number of dependents on your W-4 and start making quarterly payments instead of monthly payments. Working with tax professionals like tax attorneys can help you to discover the best course of action for your specific tax situation!
Besides, paying early will reduce the amount of interest you owe. Furthermore, paying taxes early also reduces the amount of the failure-to-pay penalty, which is charged when taxes are not paid by the extended deadline or due date.
Time
In addition, an extension will give you more time to prepare your tax return. If you missed the April 15 deadline, you can file a tax extension until Oct. 15. Otherwise, you could face a failure-to-file penalty that costs you 5 percent of your tax bill each month and could cost you up to 25 percent of your tax bill.
For example, if you are military personnel and were stationed in a combat zone outside the U.S. but needed an extension for the same reason, you may have been in the military for some time and missed the extended tax deadline.
If you miss the April 18 deadline, you may find yourself with penalties that are retroactive. Fortunately, there are several ways to avoid this. You can still pay your taxes directly to the IRS or through an authorized payment service.
How to file for an income tax extension
For those who missed the extended tax deadline, filing a tax extension is a great option to get your taxes done in time. While dealing with the IRS is never fun, it’s better than not dealing with it at all. Not filing your taxes on time can lead to a massive tax bill, especially if you haven’t filed them in a few years.
A tax filing extension can reduce penalties later
If you missed the April extended tax deadline, you may be wondering how to file for an income tax extension. The good news is that you’ll avoid penalties when you e-file your return within three years of the original due date. Filing your return late will only result in a delayed refund, and you may also be subject to interest charges and penalties if you owe money.
Another benefit to paying your taxes early is that it’ll reduce the amount of interest you have to pay on your account. Also, you’ll avoid the failure-to-pay penalty, which is assessed for taxes that aren’t paid by the extended deadline. By making sure you have your tax documents in order, you can save money and avoid any chances of paying the maximum penalty.
Penalties for not filing an income tax extension
If you missed the extended tax deadline, there are some penalties you can face.
Failure to pay penalty
One of the penalties is a failure to pay a penalty. These penalties are calculated based on the amount of money you owe and are usually calculated at 0.5% per month.
They can add up to a total of 25%. You can also be charged interest on the unpaid tax amount. IRS calculates the interest rate by adding 3% to the short-term federal interest rate, which is currently 4% and adjusts quarterly.
Late payment penalty
Another penalty for not filing an income tax extension is a late payment penalty. The IRS assesses this penalty if you didn’t pay the tax amount due by the extended deadline.
Fortunately, filing a return on time can eliminate the penalty. However, failing to pay the tax you owe after the extended deadline means that you’ll be charged a higher late payment penalty.
How to avoid penalties
To avoid these penalties, you should pay some of your taxes now and negotiate an installment plan with the IRS. Even if you missed the extended deadline, talk to your tax preparer and you can work out a payment plan that fits your budget.
If you are still waiting to make payments, you may want to consider applying for a loan or credit card to pay off your taxes. You may find that the interest charges on a credit card are cheaper than the penalties on an IRS account. There are also other ways to pay your taxes. One option is to file a return online.
The penalties for not filing an income tax extension are quite significant. For each month that you don’t file your return, you’ll have to pay up to 5% in interest on the balance of the unpaid tax. These penalties can add up very quickly and can be as high as 25% of the amount of unpaid taxes.
How to fix a late income tax return
If you missed the extended tax deadline, you have many options when it comes to fixing your late income tax return. You can e-file your tax return or ask for an extension. But it is important to file your return on time or you will incur late filing and late payment penalties. If you wait until the last minute, you may end up paying ten times as much as if you filed your taxes on time.
While missing the extended deadline isn’t the end of the world, it is a problem that could cost you thousands of dollars in penalties. In some cases, you may be able to get the IRS to waive penalties for filing your return late. Some common reasons include medical emergencies, emergency travel, and family troubles.
Talk to a tax professional with experience
If you are unsure about being able to make the deadline in time, talk to an attorney who can set you up with an extension and any other steps to ensure you stay in the best possible financial situation. If you have missed multiple deadlines, it is also important to speak to an attorney about any penalties or fines you need to deal with. This can help you set up a plan of success for your personal finance.
By speaking with an experienced tax attorney, like Joseph Damiens, you can be sure to have all of your taxes prepared for the following year so you know that you are both saving all the money you can and reducing your tax liability.
Common mistakes people make when filing taxes
Many taxpayers make common mistakes when they file their taxes, but the best way to avoid them is to do it electronically. This will prevent many common errors, such as failing to fill in the right boxes and figures, or not including the correct deductions, credits, and allowances. If you can avoid these mistakes, you will be well on your way to receiving your refund without hassle.
If you are concerned about missing the extended tax deadline, you should know that it is not the end of the world. While dealing with the IRS is never fun, filing taxes on time is better than not at all. Those who have not filed their taxes in years, they might end up with a ballooning tax bill.
When filing your return, be sure to fill out all of the required forms, and don’t skip any key ones. Not only will this prevent processing delays, but it will also ensure that you avoid late fees, accrued interest, and penalties.
If you missed the October 17th extended tax deadline or have questions about other tax matters, consider contacting a knowledgeable tax attorney at Damiens Law today by calling (601) 957-9672 to learn more about your options.
