What to Do If You Missed the Tax Filing Deadline

Missing the tax filing deadline can be stressful, but it’s important to take action as soon as possible to minimize any penalties and interest. Whether you simply forgot or encountered unexpected circumstances, here’s what you should do if you missed the April 15 tax deadline:

File Your Return as Soon as Possible: Even if you missed the deadline, it’s crucial to file your tax return as soon as you can. The longer you wait, the more penalties and interest will accrue. If you’re due a refund, there’s no penalty for filing late, but you should still file promptly to receive your refund.

Understand the Penalties: The IRS imposes a failure-to-file penalty and a failure-to-pay penalty for late tax returns. The failure-to-file penalty is typically 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%. The failure-to-pay penalty is 0.5% of the unpaid taxes for each month, also up to 25%.

Pay What You Can: If you owe taxes but can’t pay the full amount, pay as much as you can when you file your return. This will reduce the amount of interest and penalties that accrue on the unpaid balance. You can also request an installment agreement with the IRS to pay the remaining balance over time.

Request a Penalty Abatement: If you have a valid reason for missing the deadline, such as illness or a natural disaster, you may qualify for a penalty abatement. This allows the IRS to waive the penalties for late filing or payment. You’ll need to provide documentation to support your request.

Consider Filing for an Extension Next Year: If you missed the deadline due to time constraints or incomplete information, consider filing for an extension next year. An extension gives you an additional six months to file your return, but it doesn’t extend the deadline to pay any taxes owed.

Stay Informed About State Deadlines: In addition to the federal tax deadline, each state has its own filing deadline. If you missed the state tax deadline as well, follow similar steps to file your state return and minimize penalties.

Missing the tax filing deadline isn’t the end of the world, but it’s crucial to act quickly to minimize the consequences. File your return as soon as possible, pay what you can, and consider requesting a penalty abatement if you have a valid reason for the delay. Taking these steps with the guidance of Peggy's Family Tax Service will help you get back on track and avoid further complications with the IRS.