If You Missed the Tax Deadline, Don’t Fret!

If You Missed the Tax Deadline, Don't Fret! By Stephen J. Ganns, CPA{2:42 minutes to read} For whatever reason, you did not file your taxes on time:

  • Maybe you forgot;
  • Maybe your accountant forgot;
  • Maybe you just don’t care.

Well, you should care, because it’s not best practices to fail to file a tax return if you are required to. 

If you forgot to file, here’s some advice: File as soon as you can! Especially if you’re getting a refund! Why let the IRS or any state agency hold your money?

Let’s say you owe money!

If you do owe taxes, you should file as soon as you can, because the IRS and/or state agencies are even more aggressive about penalties for non-filing than for non-payment. (The IRS and state agencies will work with you if a return is filed and you cannot pay everything on time.) Penalties run as high as 5% a month – yes, you read that correctly, a month – when you do not file on time.

So let’s say you owe $1,000, then the penalties can run as high as $50 per month!

So, let’s say you are sorry you filed late, you are ready to file now and you owe money. Pay as much as you can when you file. This will minimize the current penalties and reduce any further interest and/or penalties.

The IRS will work out a payment arrangement with you in one of two ways:

  1. File form 9465 with the return; or
  2. Go onto the IRS online payment agreement tool.

Now let’s say the IRS owes you!

If you are due a refund, again, file as soon as possible. If you do not file your return within 3 years, even if you are due a refund, you will probably lose it. The IRS is not required to pay any refunds, even if you can prove you have a right to one, if they are over 3 years old. The IRS does not feel it’s their responsibility to hold on to your information waiting for you to file and claim your refund.

Whether you owe money or are getting a refund, if you have any questions, please talk to your tax preparer or call us any time at 914-682-7007.

 

Stephen J. Ganns

Stephen J. Ganns, CPA
914-682-7007
steve@gannscpa.com
www.gannscpa.com

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