Don’t Panic Just Yet If you haven’t filed your Taxes

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Don’t Panic Just Yet If you haven’t filed your Taxes

“I NEED TO FILE BY APRIL 17th tax deadline” or the IRS is going go get me…”

Calm Down, relax!!!

This does not apply to everyone who files their tax returns after the yearly deadline. The late payment penalty for taxes only apply to those who owe money when upon filing their tax return.. If you are getting a refund, there is no need to rush to file your taxes as there is no penalty for you.

Think about it from a personal perspective. Do you seriously think you would get away with penalizing someone if they ask you for money you owe them days after you said you would pay it back? “Well since you didn’t ask for it on time, I’m going to reduce the amount I owe you?” Really? Who would go for that?

The IRS even gave you an additional day to file your taxes due to some system issues on April 17. So if you still didn’t file on time, then you deserve to be penalized.. YOU HAD 3 MONTHS AFTER ALL!!!

If you haven’t filed yet, you should file your return as quickly as possible, pay as much as possible, so you can reduce penalties and interest tacked onto the amount that’s owed. The penalties assessed, known as the failure-to-pay penalty, is usually 5% for each month you’re late, or part of the month that a return is late. But if a return is filed more than 60 days after the April due date, the minimum penalty is either $210 or 100 percent of the unpaid tax, whichever is less.   IRS Free File is still available on through Oct. 15 to prepare and file returns electronically.

If there is a good reason that you’ve filed late, you ought to let the IRS know in a written explanation attached to your return. And I hope your dog eating your tax return isn’t the excuse you plan to use.

If this year was a one-off and you have a good history of filing on time, you may qualify for penalty relief. If you haven’t been charged with any penalties in the last 3 years and meet other requirements, you’ll probably qualify for this relief. You can go to the first time penalty abatement page on the IRS website.

As I like to inform my clients… You can run, but you can’t hide from the IRS. Look at it as a blessing that you have done so well financially throughout the year, that its time to pay your debt back to society… (I suppose).

We can’t have our cake and eat it too…