Missed The Tax Deadline? Don't Panic! 5 Steps To Take
Posted on: 18 April 2022
Did you miss the annual income tax filing deadline? If so, there's no need to panic. You still have time to right this mistake, keep yourself in good standing, and save money. Here are five steps to follow.
1. Check for Extensions. Taxpayers can get extensions of time to file and pay their income taxes under some circumstances. You can apply for an extension yourself, but it's likely you didn't do this if you just accidentally missed the deadline. However, you can also claim automatic extensions if you were serving in a combat zone, were affected by a federal natural disaster, or were out of the country (an extension famously used by astronaut Jack Swigert during his trip to the moon!).
2. File As Soon as Possible. If you aren't eligible for an extension, do file your tax forms as soon as possible. Penalties for late filing are currently 5% of the unpaid amount due each month your return is late. So while you may have some penalties and interest, keep this to a minimum by minimizing the length of time they're late.
3. Get Filing Help. No matter what caused you to forget — or neglect — to file taxes on time, one solution can help you get things fixed: a tax professional. Working with an independent third party will motivate you to get the job done at last. They'll also help you locate missing documents or put together data needed to report income and expenses — particularly useful if this was what held you back until now.
4. Make a Payment Plan. Have you procrastinated because you may owe taxes upon filing? Unfortunately, delaying the filing of your return doesn't usually extend the deadline to pay. But even if you still can't pay what you owe, you can set up a low-interest payment plan directly with the IRS. Your tax preparer can help. This ensures you stay in good standing with the IRS and don't accrue additional failure-to-pay penalties.
5. Plan for Next Year. Being late on your income tax filing can be stressful. So take this time to prevent it from happening next spring. Make your tax appointment now. Talk with your preparer about ways to make record-keeping easier. And request reminders about things like tax checkups and estimated tax due dates to help keep you on track.
No matter how late you are in filing your income taxes, you can always help solve the problem by taking action now. It's never too late to get back in the good graces of the IRS. Make an appointment with a qualified accountant who does tax preparation in your state today.
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