There are number of things in this world that can cause our hearts to jump out of our throats – flashing police lights, a somber appearance from a doctor, or missing a tax deadline. That last one can cause such a panic because all you can think about are penalties, fees, garnished wages – it’s enough to make life a nightmare. But before you start beating yourself down with terror, let’s clear up a few things.
First, the IRS
doesn’t assign late fees to taxpayers who normally receive a tax refund – they care about the money you own them, not the other way around… unfortunately. And you’ll also have until 2018 to claim any backed tax refunds from this current tax year.
Second, if you do happen to owe the IRS this year, and you missed the deadline, your best option is to remain calm, and simply file your IRS Form 1040 as soon as possible. Don’t even worry about if you can’t pay the tax owed when you file – the IRS can work with you on that. But you’ll get hit with a heavier penalty if they don’t receive your tax return at all.
Late Filing Penalties
- The failing-to-file penalty is 5% of the taxes owed for every month, or part of month, your return is late – up to a maximum of 25%
- The failing-to-pay penalty is 0.5% of the taxes owed for every month, or part of month, those taxes remain unpaid – also up to a maximum of 25%
Important: A penalty is applied if you do not file either your tax return, or a tax extension, by the April 18 tax deadline. A penalty is also applied if file your return on time, but didn’t pay any owed taxes by the April 18 deadline. With a tax extension, you can only extend your time to file – not time to pay.
Not Filing At All
Other than the obvious penalties, if you’re a wage earner who doesn’t file, you will receive some sort of letter from the IRS as a reminder – especially if you received a W-2 or 1099 because your employer already filed a copy to the IRS.
For you U.S. citizens or resident foreigners who are out of the country during tax season, you’re granted an automatic 2-month extension to file and pay without any penalties. Check out our informative blog for more – Globetrotting Taxes | June 15 Deadline for Americans Living Abroad
Missing a tax deadline can be a little terrifying, but if you know you’re pushing it to last minute, why not e-file IRS Form 4868 to get a 6-month personal tax extension? Even if it’s 11:50 p.m. on the night of the deadline, you can still e-file with ExpressExtension and get approved – 10 minutes is all you need.
For any questions or assistance with e-filing a personal tax extension, don’t hesitate to give our live, US-based, e-filing professionals a call at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST. We’re also available through 24/7 email with firstname.lastname@example.org.