Every year, thousands of us miss tax deadline for numerous reasons. Even though it may trigger penalties and interest, it is not a reason to panic. As long as you know the consequences and what to do if you miss tax deadline, you will be able to focus on finishing your tax returns and remedy the situation.
In a nutshell, if you missed the income tax deadline, file taxes as soon as possible (you can still do it online with TurboTax), pay your liability, or set up a payment plan if you can’t pay what you owe in full.
Assuming that you didn’t file for extension, you should file your taxes as soon as possible. This is very important if you owe money to Uncle Sam because you are subject to penalties and interest. Those fees can add up over time and top off at 25% of your liability. Even if you filed for extension, you may have averted paying a penalty, but still have to pay interest on the outstanding amount.
If you expect a refund, there is no reason to panic. You will not be penalized for filing late but you should still file your taxes as soon as you can. After all, it’s your money and you won’t receive them until you file a return.
As of right now you can still e-file your taxes and this is probably your best option. E-file is available until October 15th and you receive an email confirmation from the IRS with 24 hours informing you about acceptance or rejection of your tax return. If you still haven’t filed until October 15th, you will have to print and mail your return to the IRS.
With respect to your tax liability, the IRS suggests paying as much as you can afford to avoid paying interest. Although late filing penalty can be reduced, interest amount cannot be lowered. You can pay you liability in full with a debit or credit card, bank transfer, or check or money order.
Not being able to pay your tax liability in full may require you to set up an installment payment plan with the IRS. Tax preparation software, such as TubroTax can help you set it up as you prepare and file your return, but you can also do it on your own. File Form 9465, Installment Agreement Request and attach it to the front of your return or set up the payment online with Online Payment Agreement Application.
First, select the option that best describes your current tax situation:
To set up the installment plan, you will need the following information:
- Social Security number or Individual Taxpayer Identification Number (ITIN).
- Date of birth.
- Caller ID number (if applicable).
- PIN number or Adjusted Gross Income.
- Bank address.
- Employer address.
- Highest amount you can pay and when.
- Current year tax return to verify some information.
The good thing about applying for installment payment online is that you receive immediate notification if the IRS approves your request.