What Happens If You Have Missed The Tax Extension Deadline?

There is no denying, we have got been there. Life is busy. We need to take care of our families, work obligations, and other daily responsibilities.

With all the daily hustle-bustle, you realize that the October 15, tax extension deadline has passed and you haven’t filed.

What would you do now?

Here is a breakdown of the scenarios that happens when you miss the tax extension deadline and what you must do afterwards. Before you dive into it, you must know all about tax services West Hollywood that can help you out of this situation.

Will You Be Penalized For Filing Tax After The Deadline?

Yes. When you miss the October 15 tax filing deadline, you will get penalized. The IRS allowed you an extra six-month extension of time for filing the taxes.

Now, this was not an extension to pay taxes, but an extension to complete the return. Additionally, any penalty or interest that you may owe as result of failing to file and pay your tax timely, you will be get subjected to late filing fee on unpaid taxes.

The penalty included is generally 5% per month of any unpaid balance till five months. The penalty can go up to 25% of the remaining balance owed. However, to make things worse, the interest continues to accrue till liability gets paid finally.

Moreover, if you file the taxed 60 days later, you will receive an additional penalty of $435. It is the minimum late filing penalty that is lesser of what you owe in taxes. So, it is important to go ahead and file even if you are not able to pay the outstanding in full and talk to the IRS.

Of course, the right firm offering tax services West Hollywood can guide on this if you are missing any crucial information, etc.

What If The IRS Owes You A Refund?

For taxpayers who believe the IRS owe them a refund, have three years from the actual due date of the return to file and claim this refund. However, if you wait too long, you will forfeit refunds you may be entitled to.

If you are filing tax return after October 15, tax deadline and don’t owe any tax there are no late filing as well as interest.

What Happens If You Don’t File Your Return?

If you don’t file the tax return with the IRS, they will create a substitute return on your behalf based on the income data such as 1099s, W-2s, etc, that your employer provides them.

It is essential to understand that this substitute return won’t include calculations for deductions and credit that you have qualified for.

It is best to hire experts with knowledge of tax services West Hollywood so they can offer you all the guidance and assistance needed.

Ensure you choose a firm having years of experience dealing with tax problems similar to yours. Take time in hiring the right one.

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Created on Nov 11th 2020 01:27. Viewed 205 times.

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