Here’s what to do if you missed the federal tax deadline

If you missed the federal tax deadline of April 15th, it’s imperative to file your return and pay any outstanding taxes promptly.

The Internal Revenue Service (IRS) imposes substantial penalties and interest on late filings and missed payments.

The late filing penalty is a hefty 5% of your unpaid balance per month, capped at 25% of your total balance.

Additionally, you’ll incur a 0.5% failure to pay penalty each month, with a maximum charge of 25% of unpaid taxes.

Interest rates on unpaid taxes fluctuate based on current rates.

Failure to file and pay on time can result in an audit, delayed processing of your return, or notifications from the IRS.

To avoid these complications, file an accurate return as soon as possible, even if you’re missing some tax forms or earnings information.

Consider using IRS Direct Pay or your IRS online account to make any late payments.

The IRS also offers payment plans if you can’t pay your entire balance upfront.

These plans include short-term and long-term payment options, providing you with flexibility to settle your debt in manageable installments.

In some cases, you may be eligible for first-time penalty abatement, which allows for the removal of certain penalties.

However, eligibility for this program depends on your penalty type and past tax compliance history.

Remember, time is of the essence.

The longer you wait to address your tax obligations, the more you’ll accumulate in penalties and interest.

Filing your return and making full or partial payments will minimize these financial burdens and help you avoid further complications.