{"id":1016,"date":"2021-02-26T15:29:38","date_gmt":"2021-02-26T15:29:38","guid":{"rendered":"https:\/\/taxreliefprofessional.com\/?p=1016"},"modified":"2023-09-26T22:03:26","modified_gmt":"2023-09-26T22:03:26","slug":"tax-advice-what-happens-if-you-file-your-taxes-too-late","status":"publish","type":"post","link":"https:\/\/taxreliefprofessional.com\/tax-professional\/tax-advice-what-happens-if-you-file-your-taxes-too-late","title":{"rendered":"Tax Advice: What Happens If You File Your Taxes Too Late?"},"content":{"rendered":"\n

As of right now, chances are your 2020 tax return must be filed by April 15th, 2021.<\/p>\n\n\n\n

In 2020, the IRS extended the tax filing deadline to July 15th. While this may change<\/a>, you need to be prepared to file your taxes on time.<\/p>\n\n\n\n

If you don’t file your taxes on time, you will need professional tax advice<\/a>. You can also end up paying out of pocket.<\/p>\n\n\n\n

Keep reading to learn more about what really happens if you don’t file your taxes on time – and how to make sure your taxes get taken care of by the deadline.<\/p>\n\n\n\n

Penalties for Late Payments<\/h2>\n\n\n\n

If you file your taxes on time but don’t pay your taxes on time, you could face a late payment or failure to pay a penalty from the IRS.<\/p>\n\n\n\n

The IRS charges a failure to pay penalty if you don’t pay your full tax bill by your due date. This amount is .5% of your unpaid bill for each month or part of a month that your bill goes unpaid. The max amount you can incur is 25% of the amount you still owe.<\/p>\n\n\n\n

This penalty applies if you have filed your taxes but haven’t paid what you owe<\/a>.<\/p>\n\n\n\n

Penalties for Filing Late<\/h2>\n\n\n\n

If you miss the deadline to file your taxes altogether, you could face steeper a steeper penalty.<\/p>\n\n\n\n

The IRS imposes a late filing fee of 5% of the amount you owe for any amount that remains unpaid after the filing date. This penalty is charged as a percentage of each month or part of a month that your return is late. The most you will pay is 25% of the amount you owe.<\/p>\n\n\n\n

This type of penalty starts accruing on April 15th, unless you are granted an extension. If you file an extension, you will have until October 15th. At that time, this late filing penalty will go into effect.<\/p>\n\n\n\n

This penalty will continue to accrue until you file your return. If you find yourself in this situation, it’s important to file your return as soon as possible. If you wait more than 60 days after the due date to file, the penalty gets even worse.<\/p>\n\n\n\n

If 60 days pass and you haven’t filed your return, you will face a penalty of at least $435 or 100% of the amount you owe, whichever is less.<\/p>\n\n\n\n

It’s important to note that if you don’t owe taxes and are instead owed a refund, you won’t incur a penalty for filing late. After all, the IRS owes you at that point. It’s better to file by the deadline, or as soon as possible, so you can get back the money you overpaid.<\/p>\n\n\n\n

What if You Don’t File or Pay?<\/h2>\n\n\n\n

If you don’t file or pay your taxes by October 15th, or five months after the filing deadline, the failure to file penalty will max out.<\/p>\n\n\n\n

However, you will continue to face the failure to pay penalty until you pay your taxes. The maximum penalty still remains capped at 25% of what you owe.<\/p>\n\n\n

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\n Evaluate your tax situation\n <\/h2>\n

\n By evaluating your tax situation, you can identify areas where you may be able to reduce your tax burden and make informed decisions about your financial future.\n <\/p>\n \n \n\n\n

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