Did you know that missing the deadline to file your taxes can have financial consequences? The IRS takes filing deadlines very seriously, and if you miss the federal deadline to file, you’re going to end up paying a failure-to-file penalty. The IRS will require you to pay 5% of the unpaid tax for each month, or part of the month, that you fail to file your return (up to a max of five months). If you do not end up filing your return within 60 days of the due date, the minimum penalty is $135 or 100% of the amount due on the year’s tax return, whichever is smaller.
To avoid paying these penalties, you should always file your taxes by the IRS deadline. Even if you know that you cannot pay what you owe the IRS, filing on time will ensure that you aren’t hit with the failure-to-file penalty. The penalties on late payment are less than the penalties for not filing, and, in many cases, there are options available to help you deal with unpaid taxes once you actually file your return, such as installment agreements or offers in compromise. A qualified tax resolution specialist will be able to help you both minimize the taxes owed on your return and develop a strategy for resolving your tax debts if the amount owed is beyond your ability to pay.
If you are behind on filing your taxes and want to know what kind of options you have, get in touch with Taxation Solutions, Inc. We have more than 40 years of experience helping taxpayers with late filing options, and we’ll put our expertise to work for you!