August 26, 2016

irsdeadlineAt some point, most people have been tempted to delay the tedious task of paying taxes at least once in their lives. Did tax season slip your mind completely? What happens if you didn’t file your taxes this year? There are several things you need to know if you file your taxes late.

The first thing you need to be aware of is that the fees for filing your taxes late are significantly more expensive compared to fees for paying your taxes late. If you file late, the penalty is typically 5% of the tax balance for the period of time you did not submit the appropriate paperwork, which can reach up to 25% of your total tax bill. You’re charged a fee of $135 if you wait more than 60 days to file, or 100% of the taxes you owe—whichever amount is lower. The penalty for your failure to pay, however, starts at only 0.5%. This amount begins accruing on the first day your payment is late.

This means you should file the paperwork—even if you do not yet have the money to pay the fees owed. In order to prevent the penalties from compounding on each other, pay as much as you can when you file. Remember: Every single day matters.

If you will be extremely burdened by paying off your tax bill, you may choose to file a request to pay your balance in installments. You may also attempt to reach an agreement with the IRS known as an offer in compromise, which enables you to pay an amount lower than what you actually owe. Either way, you will need to apply for these payment methods and wait for the IRS to review your applications.

No fine for refunds

If you are receiving a refund on your income tax return, the good news is that you won’t be fined for filing late. On average, you should receive your refund in the mail or in your bank account less than 21 calendar days from the day your paperwork is filed.

To track your refund, you can opt to use IRS2Go—the agency’s app, or Where’s My Refund? —the agency’s website. If you file your paperwork online, you can start checking the app or website 24 hours from the time you filed. If you filed on paper and sent your documents via snail mail, however, then you may need to wait as much as four weeks before your refund status reflects on the website.

Fill tax returns from previous years

If this isn’t the first time you’ve forgotten a tax day, you may want to fill out additional tax returns from the years you missed.

The government is obliged to repay tax refunds of up to three years from the date you were supposed to file for them. This means that if you file the necessary paperwork before April for years 2013, 2014 and 2015, you should receive a check from the IRS for the money owed to you. An experienced tax attorney can help you with this matter.


Categories: Blog, IRS, Tax Penalties, Tax Tips, Taxpayers' Rights, Uncategorized