What To Do If You Missed the Tax Deadline
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or visit the additional resources below to see how this information may apply to you.
The tax deadline typically falls on April 15, unless it lands on a holiday, weekend, or is extended for special circumstances such as COVID-19. If you missed the tax deadline or failed to request an extension by the due date, here's what you should do:
If You're Expecting a Refund
Individual taxpayers who are owed a refund do not have penalties for filing late. However, if you want to receive that refund, you must file your tax return. You have up to three years to file a tax return before you lose the opportunity to claim your refund.
If You Owe Taxes
The opportunity to file an extension has passed, so individual taxpayers who owe taxes should file as soon as possible. If you haven't filed your taxes and have an unpaid balance, the tax you owe is subject to both failure-to-file and failure-to-pay penalties and interest. These penalties and interest accumulate every month and can add up quickly.
Failure-to-file penalty
This penalty will add 5% of the unpaid taxes to your balance for each month or part of a month that your tax return is late. If your tax return is over 60 days late, then the penalty has a minimum of $435 or 100% of the tax owed, whichever is lower. After five months, this penalty will max out at up to 25% of your unpaid taxes.
Failure-to-pay penalty
The penalty for late payment is 0.5% of the unpaid balance of tax owed past the filing deadline. If the IRS issues a notice of intent to levy property, the 0.5% increases to 1% if you haven't paid off your balance within 10 days. This will accumulate for each month or part of the month that the tax remains unpaid, up to a maximum of 25%.
Interest
The unpaid balance will accrue interest and compound daily from the due date of the tax return until you pay the balance in full. The rate is determined quarterly and is the federal short-term rate plus 3%.
If you can't pay your taxes in full, you should pay as much of your balance as possible to avoid penalties and interest on the unpaid balance. In some cases, you may be eligible for penalty relief.
Get Help Filing Your Taxes
In short, you should file your taxes as soon as possible whether you are expecting a refund or owe taxes, even if you can't pay in full. If you need help filing your current or prior year tax returns, give us a call at (360) 922-0235 and one of our tax preparers can help you file!
IRS Resources
Topic No. 653 IRS Notices and Bills, Penalties, and Interest Charges
Failure-to-pay penalty
Penalty Relief
Paying Your Taxes
