Whenever possible it is recommended that you file and pay your taxes by the deadline. However, if you are unable to meet the deadline, there are some things to do and today we are sharing what they are.
Request a Deadline Extension
As soon as you know, you are going to miss the tax deadline file for an extension. This will allow you to file your taxes by October 15th. Therefore, if you do not owe any money, you are just delaying your refund. However, if you do owe money you still need to pay the money due by April 15th, despite the fact that you will be filing late.
What to Expect if You Miss the Deadline
In the event that you are unable to file for an extension and miss the deadline, you will be looking at penalties and interest.
1. Failing to file is 5% per month with up to 25% maximum
2. Failing to pay is 0.5% per month with a maximum of 25%
3. If you fail to file and pay, the failure to pay penalty reduces the failure to file penalty
What Happens if You Underpay
When you request an extension to file, you are putting yourself at risk of underpaying if you owe the IRS money. Depending on how much you underpaid you could be looking at a fine or criminal charges.
Call Huddleston Tax CPAs
If you missed the tax deadline, get in touch with us. We’re a Seattle CPA tax firm staffed by experienced CPAs. Our course of action is to file an extension from the date you were contacted by the IRS. We will submit a response letter on your behalf acting as your personal attorney. From there, we prepare and file your delinquent return to help minimize penalties. Of course, best case scenario is to start preparing for tax season early. When you wait until the last minute, you are putting yourself at risk of finding yourself in trouble with the IRS.