What are the penalties for missing the April tax deadline?
So the April tax deadline came and went, and you failed to file on time. Now what? While missing the tax filing deadline can have potentially serious consequences, the good news is that usually you can remedy your failure to file with limited penalties. Our San Diego, California tax collections lawyers discuss what penalties you could face if you miss the April tax deadline and what to do to remedy your default.
Potential Penalties for Not Filing Your Taxes on Time
If you do not file your tax return in April, or do not file an extension, the IRS will assess a penalty for your failure to file of five percent of the amount you owe for the year, for each month that you are late, up to a maximum of 25 percent of your unpaid taxes for the year. You could also be levied a failure to pay penalty in the amount of .5 percent of the amount due for the year per each month you are late, capped at 25 percent of your unpaid taxes. Accordingly, failing to file and to pay could amount to a 50 percent penalty on top of the funds you owe, in addition to interest.
What to Do If You Miss the Tax Deadline
The good news is that you can take action to prevent amounting massive penalties if you have missed the tax filing deadline. First, you should consider filing the free extension. You can seek an automatic six-month extension by filing a Form 4868. You will need to provide a rough estimate of your tax bill for the year. The extension may be just what you need to buy yourself more time to complete your return and pay your taxes.
No matter how late your taxes are, it is critical that you still file your return. Failure to file whatsoever could force the IRS to create a substitute return based on information it has about your salary. This return will not take advantage of the many deductions you may otherwise have claimed. Contact a tax collection lawyer for assistance with your return and resolving any outstanding tax matters.
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