Filing an automatic extension of time to file a US federal income tax return is the only option to avoid paying late-filing and failure-to-file penalties. The Internal Revenue Service is very strict about taxpayers being up-to-date with their taxes. As long as you be honest with the IRS and let the agency know that you’re not up to the bar with filing or paying, you will get help. Avoiding taxes whether it’s filing or paying taxes, make sure to contact the agency using the right tax forms and let them know about your situation.
Now that the tax filing deadline has passed, those who haven’t filed their tax returns and did not place an extension on their returns will receive penalties. While these penalties are inevitable, you might ask whether it’s possible to file an extension or not. Sadly, the Internal Revenue Service doesn’t allow taxpayers to file for an extension after April 15. It’s May 17 for the 2021 tax season as the deadline was already postponed due to COVID-19 and new tax changes affecting the start of the tax season.
What happens after the deadline?
After the tax filing deadline, there is not much you can do except speeding up the process of submitting your tax return to the Internal Revenue Service. One thing that you should always keep in mind that do not to send an incomplete tax return. You will have to amend your return which will contribute to the time you wait to get your refund or come up with your tax liability to pay Uncle Sam.
Setting up a payment plan with the IRS
If you don’t owe taxes at the time you file your return, there isn’t much affect your taxes, but, you will have to pay late payment penalties to the IRS upon paying taxes after the deadline. Make sure that you’re not behind your payments. If you’re unable to pay off the tax owed, contact the IRS and set up a payment plan with the agency. You can pay off your tax liability over some time. Generally, the IRS enables taxpayers to pay off their tax liability for the previous year up to over a 180-day period.
The best part about the payment plans is that you won’t pay interest and penalties for the days you’re behind on your payment after setting it up. Taxpayers that are severely behind on their payments will pay minimum interest and penalties and there won’t be further amounts added.
Tax refunds for the previous tax years
Late filed returns that are significantly behind on the deadline like a couple of years are still eligible for refunds. Simply because you haven’t filed your return doesn’t mean you let go of your refund completely. You can still get your tax refund even if you haven’t filed your return for years. Make sure to file your return as soon as possible to get your refund. Taxpayers aren’t eligible for getting their refunds until they file their return and tell the IRS what the agency owes to them.