So, what typically happens if you miss the tax deadline? Will you have to pay an exorbitant amount of penalties and fees? Surprisingly, there are quite a few exceptions that may apply to you and your tax situation which may provide you with additional time to file and pay your taxes this year. Here, we'll provide you with what you need to know if you missed the tax deadline for 2022 and how you can move accordingly.
Will I Have to Pay a Penalty for Filing Late?
If you're confident that you'll be receiving a refund, then there's no reason to worry. There’s no penalty for filing after the April 18 deadline if a refund is due to you.
Families who don’t owe taxes to the IRS can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025, without any penalty.
If you chose not to file a tax return because you think you didn't earn enough money required to file, you won't receive a penalty if you're owed a refund. Most zero-income taxpayers are due an EIC refund.
If you owe taxes and did not pay by the deadline April 18, 2022, you are subject to the following penalties and interest:
The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.
If your return was over 60 days late, the minimum Failure to File Penalty is $435 (for tax returns required to be filed in 2020, 2021, and 2022) or 100% of the tax required to be shown on the return, whichever is less.
Taxpayers should file their tax returns and pay any taxes they owe as soon as possible to reduce penalties and interest. An extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of October 17. Penalties and interest apply to taxes owed after April 18 and interest is charged on tax and penalties until the balance is paid in full.
Who Has Additional Time to File Taxes?
Some taxpayers may have extra time to file their tax returns and pay any taxes due. This includes the following:
Disaster victims
Taxpayers living overseas
Military service members
Eligible support personnel in combat zones
You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U.S. citizen or resident alien, and on the regular due date of your return if the following applies:
You are living outside of the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or
You are in military or naval service on duty outside the United States and Puerto Rico
What If I'm Unable to Pay my Taxes?
If you didn't file your tax return because you can't afford to pay your taxes, there are a couple of options that are available to you and that you may be qualified for. The IRS offers payment plans, giving you the chance to pay the tax you owe over time. In addition to payment plans, you can also request the IRS to temporarily suspend tax collection or request an offer in compromise (OIC) which is where you would pay a reduced amount in taxes to the IRS. These options all come with certain stipulations and requirements for each.
Tax Incorporated has the right knowledge and strategies if you can't pay the taxes you owe, or if you need an extension filed. The IRS advises continuously for taxpayers to e-file their taxes. Our virtual tax preparation platform allows us to securely e-file and help you or anyone else across the country. Visit our website www.taxincorp.com.
For more information, schedule a consultation with us today.
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