Things are as straightforward as this: if you fail to file your taxes by the predefined deadline, you will incur a penalty on the outstanding taxes you owe. However, if you are eligible for a tax refund and you missed the deadline, there is a high chance that your refund payment will be delayed.Â
It’s in your best interest to apply for a tax extension when you can see that you might be late in submitting your tax return.Â
Read on to learn more.
What to Expect from the IRS if You File Late?
As a taxpayer, you might wonder about what happens if you file taxes late, which is why it is important to know about the potential consequences and penalties. You should know that the IRS receives millions of tax returns at the very last minute. This aspect might lead you to wonder whether they will even notice that you are late.
We recommend that you file for taxes before the deadline with the much-needed guidance of TurboTax professionals who can provide you with professional support for various tax situations so that you can file your taxes with confidence. It is in your best interest not to take the risk of filing late.
Even if you are a few days past the due date, you should expect a penalty from the IRS.Â
What Happens If You Miss the Deadline for Filing Taxes
The answer to the question of what happens if you miss the deadline for filing your taxes actually depends on whether or not you owe money or whether or not you’re getting a refund. With that said, if you are indeed getting a refund, you won’t receive a penalty. This is good news. This also means that if you are getting a refund and you submit a tax return after the deadline, then you will receive the refund later down the line.
Believe us when we tell you that you should still find your taxes as soon as you can. Technically, you are allowed to reclaim your tax refund for up to three years after the deadline. It’s still not recommended to wait that long because if you claim your refund later, you might forfeit the refund entirely.
What Happens if You Owe Taxes And You Missed the Deadline
As a potential taxpayer, you must keep in mind that paying your taxes late comes with strong consequences. For instance, for every month that you file taxes late, you will have to pay an additional 5% on the outstanding amount that you owe. You should know that a month doesn’t necessarily mean 30 days to the IRS.
This aspect indicates that even if you are late by only one day, you’re at high risk of being hit with a full 5% penalty. You can’t rule out the fact that the IRS may charge you a monthly 25% of the outstanding amount due to the failure to pay your penalty.
Final ThoughtsÂ
You can also expect the IRS to charge you interest on the balance first. With that said, it’s certainly in your best interest to pay what you can and leverage the payment plans with the IRS so you can avoid hefty penalties and interest.
