The 2014 extended tax deadline will be over on October 15th and while many will scramble to make the tax deadline, some of you may miss it and are wondering what to do. Don’t worry! If you missed the extended tax deadline, here are answers to 5 of your burning questions to help you figure out what to do next.
I missed the tax deadline. Should I still file?
Yes, you should still file your taxes as soon as possible.
How should I file my taxes?
IRS e-file closes October 15, but there is good news. You can still file by mailing in your tax return.
Will the IRS charge penalties for not filing by October 15th?
If you have a tax refund coming, there is no penalty for filing late. Penalties are calculated based on amounts due.
If I owe money, will I be charged penalties and interest?
Unfortunately, you will receive three separate penalties on balances due on late tax returns as follows:
- Failure-to-file penalty
- Failure-to-pay penalty
The failure-to-file penalty can be the most steep, as it starts out at 5% for each month the tax return is not filed, up to a total penalty of 25% of your balance due, which is why you should file your taxes as soon as possible. Even if you owe money and can’t pay it you should still file to eliminate this penalty. In addition, you may be eligible for other payment options under the IRS Fresh Start Initiative.
If I have a hardship will I still have to pay penalties?
If you show the IRS reasonable cause for not filing on time, you may not have to pay penalties.
Hopefully this puts your mind at ease and moves you closer to filing your taxes. Just because you didn’t make the tax deadline doesn’t mean you should forget about filing altogether. Who knows? You may be missing out on a tax refund.
For help with your income tax extension call one of our offices:
Plymouth 734.454.4100, Allen Park 313.388.7180, Grayling 989.348.4055, Royal Oak 248.399.7331, Saginaw 989.782.1985, St. Clair Shores 313.371.6600