But what happens if you miss the income tax return deadline? When, exactly, are your returns due to the Internal Revenue Service (IRS)? What can you do if you miss the deadline? Read on to discover what you need to know!
One of the most important things to know about filing your taxes is when they’re due. However, this isn’t as straightforward as stating a specific date because, well, filing deadlines can vary.
As noted by the IRS on their own website, for most Americans, Tuesday, April 18 2023 was the tax filing deadline for their 2022 taxes. Normally, it would be April 15, but that fell on a weekend this year and the following Monday was Emancipation Day in Washington D.C., hence the extension. The IRS extends the deadline to the next business day when the April 15 date falls on a legal holiday or weekend.
However, there are exceptions to this deadline. For example, some states, such as Maine and Massachusetts, may provide slightly longer for taxpayers to file their taxes.
Members of the military may also have special rules applied to their tax due dates if they’re deployed to an active combat zone or are hospitalized in the line of duty. As noted by the IRS: “you have at least 180 days after you leave the designated combat zone/contingency operation to file and pay taxes.” This helps protect active-duty soldiers, sailors, etc. from the penalties for filing late because of their work.
The IRS may also grant exceptions for individuals who they determine were affected by a presidentially declared disaster or a terroristic or military action. In such cases, the IRS states that: “You have up to one year after the due date of your return to file and pay taxes, depending on the deadline specified by the Service.”
Additionally, if you think you won’t be ready to file your taxes by the deadline, you can put in a request for an automatic extension out to October 16. It’s necessary to file this extension before the deadline, however. You can file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return to start this process.
Even if you file for an extension, any taxes owed will still be due on the normal due date. If you think you’ll end up owing the IRS (or owe any money from previous years), be sure to include a payment with your extension request.
So, what happens if you miss filing your taxes on time? If you don’t file your taxes on time, you might get a letter in the mail from the IRS notifying you that you owe a “failure to file penalty” to the Service.
The “Failure to File” penalty will vary depending on several factors, including:
At the time of this writing, the IRS states that the penalty is “5% of the unpaid taxes for each month or part of a month that a tax return is late” though it “won’t exceed 25% of your unpaid taxes.” So, if you owe $500 of income tax, your penalty would be $25 for the first month.
However, if your return is more than 60 days late, special conditions apply. In that case, there’s a minimum “penalty of $435… or 100% of the tax required to be shown on the return, whichever is less.” Note that these numbers may change from one year to the next.
So, if you were more than 60 days late filing your taxes and owed $500 of taxes for that return, you would owe the IRS an additional $435 since that would be the lower number for the minimum penalty.
Finally, the IRS charges interest on unpaid penalties. If you don’t make a payment, the amount you owe could grow.
So, what should you do if you missed the tax return filing deadline? If you missed Tax Day, there are some questions you’ll want to ask yourself:
If you owe the IRS, you’ll likely incur some penalties for failing to file on time. Should you owe the IRS, here are a few things to do:
If the IRS owes you money, you’re in a much better position. There is no penalty for filing late if you’re due for a refund. However, you should still file as soon as you can so you don’t forget.
Also, if the IRS owes you money, there is a time limit to how long you have to claim it. The IRS states that you have “three years from the date you filed your original tax return or two years from the date you paid the tax, whichever is later.” Requests for tax refunds after this period of time will result in forfeiture of the money you’re owed.
Rather than dealing with the potential penalties of filing taxes late, it may be best to file for an extension with the IRS if you think that you’re going to miss the deadline. For example, if you’re simply unable to get the paperwork you need together or are dealing with a major life event of some kind that is distracting you from filing before the deadline, then you will definitely want to file for an extension to avoid the failure to file penalty.
Just fill out the IRS’ extension request form to get started.
Of course, as you’re reading this after April 18, it will be too late for this preventative measure. However, it’s a useful piece of information to keep in mind for next year.
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Disclaimer: This blog is intended for educational purposes and does not constitute legal advice for filing your tax return. Please consult with a tax professional, certified financial planner, or an IRS agent before attempting to apply the information in this post.
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