What Happens After Missing the Deadline for Taxes?

Author: ZP Tax Inc. |

Tax preparation can be stressful for everyone, which is why filing taxes is typically at the bottom of peoples' to-do lists. Whether the April 15 deadline passed you by without you realizing it or you purposely put off taxes this year, here's what you should know about failure to file on time.

Missing the Deadline

Each year, the deadline for filing taxes is April 15. While this has been extended to July 15 in 2020 due to the Coronavirus pandemic, this is a rare occurrence.

If you don't perform tax preparation on time, the IRS can issue a penalty of 5% of the taxes you owe for every month past the deadline, with a maximum penalty of 25%. If you fail to file within 60 days of the deadline, the minimum penalty will be $210. No matter the amount, having to pay a penalty is an unnecessary burden that can be avoided.

What Happens After Missing the Deadline for Taxes?

Failing to Pay

Many people delay tax preparation because they fear they won't be able to cover their payments. Yet, you can avoid the failure to file penalty even if you can't pay your taxes right away. You also may be eligible for a payment installment plan through the IRS if you can't pay the amount of taxes owed in full. Just don't wait for owed taxes to accumulate, as this plan may only be approved if you owe less than $25,000 and haven't already leveraged the payment plan within the past five years.

If you need help navigating tax preparation this year, call ZP Tax, Inc. Serving Silver Spring, MD, and the surrounding areas, this team offers comprehensive tax services for single taxpayers and business owners throughout the community. Find out more about how they can help you manage your taxes by visiting their website or calling (301) 587-4829.

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