18 Oct What Happens When You Miss the Tax Extension Deadline?
With Oct. 15 just passing us by, many of our clients have safely filed their taxes and are preparing for the upcoming year. However, those on the outside might not have been quite as fortunate and missed the tax extension deadline.
If you’re reading this article, this is probably the boat you’ve found yourself in. So you might be asking yourself:
What happens now?
Missing the Tax Extension Deadline
Recall that those who have to file personal returns by Oct. 15 already received an extension from the regular deadline of April 15. Think of the extension as a second chance. Now that the second chance is up, don’t expect to get another extension.
The IRS will take action if you miss the extension.
You won’t suddenly lose your assets, but you’ll be subject to some high penalties. Those who neglect to file by April 15 already see some penalties of 0.5% per month, but that number could increase to 5% after the Oct. 15 deadline according to tax professionals speaking with USAToday.
What’s important to remember is that you won’t be certain of how much your penalties are right away. The amount is calculated after they receive your return. You’ll get an IRS notice sometime after you file which details how much you owe.
How Do I Solve It?
Above all else, the most important thing to do is to file your taxes IMMEDIATELY. The longer you wait to do that, the more you’ll owe the IRS.
Of course, you also run the risk of having penalties that you aren’t able to pay. If that’s the case, hire professional help. A tax resolution specialist can assist with your repayment through an installment agreement, offer in compromise, or some other solution. Many taxpayers often pay SIGNIFICANTLY MORE than they need to because they decide to handle their tax issues themselves.
At Tax Defense Ohio, we’ll hand pick a strategy just for your case. If you’re in danger of receiving a massive penalty and need help NOW, call us at 614-524-4888!