Wednesday, May 13, 2009

Missed the Tax Deadline? File Anyway

So, April 15 came and went and you didn’t file your taxes? Didn’t even get your extension filed in time? Well, I hate to be the bearer of bad news, but odds are you will be penalized when you finally do file.

If you didn’t file your taxes, it’s probably because you owe and can’t afford to pay, yet. If you were expecting a refund, you probably got your taxes filed on time, right? But I would caution you to file now, even if you can’t fully pay. Why?

Because you are shooting yourself in the foot! The IRS assesses interest on any unpaid taxes, and when you don’t file, they add on a failure-to-file penalty. The failure-to-file penalty adds 5% of your total tax bill per month! Every month you put off filing means more money you’ll end up owing. Even if you don’t have the money to fully pay your taxes, by filing now you can avoid any further failure to-file-penalties.

Thinking you’ll just file an extension? Think again. The IRS automatically denies any extension requests filed after midnight on April 15. Don’t even waste your time and postage.

So, file your taxes and pay the bill. Need help preparing your taxes—look up a Roni Deutch Tax Center. If you cannot pay the bill, you might want to look into establishing an Installment Agreement or Currently Not Collectible status. If you need help, give my firm a call.

Next year, make getting your taxes filed on time a priority.

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