Did you miss the tax deadline?
If you didn’t file your 2018 tax return by the October 15th deadline, you may be wondering what you should do. While it is important to file your return on time, you can still file your return. The IRS may penalize you for filing late, but it’s crucial that you file your return as quickly as possible to avoid more penalties and interest. Whether you owe taxes or believe you are due a tax refund, you should file your return as quickly as possible to make sure you stay compliant with the IRS.
If you need to file, you must file via paper tax return. IRS e-file is now closed, so the only way to file is to print out your return and mail it to the IRS. While you can use tax software to complete your return, you will need to print it out and mail it in. You can also get a tax professional to help you prepare and file your federal and state tax returns.
Every year, the IRS states it has close to $1 billion in unclaimed refunds. This means thousands of taxpayers are missing out on money that is owed to them. Even if you didn’t file on time, you still have three years to file your return and get your tax refund before the IRS seizes it. The average refund for the past year was $2,725. If you are due a tax refund, the IRS won’t penalize you for filing late.
If you owe taxes for 2018, then you will be penalized. Penalties are calculated based on the amount of taxes you owe. If you have owed for previous tax years and your financial situation has not changed, you are likely to owe again. When you owe taxes, it’s vital that you file as quickly as possible to avoid your tax debt increasing. If you don’t file or pay by the deadline, you can face a few penalties from the IRS. You can be hit with the failure-to-file penalty that starts out at 5% for each month your tax return is not filed. If after five months you still haven’t paid, the failure to file penalty will max out. Along with the failure to file penalty, you can also be hit with the failure to pay penalty. The failure to file penalty is .5%. You can get penalties abated, especially if you qualify for financial hardship or if you qualify for first-time penalty abatement.
If you can’t pay the taxes you owe in full, the best thing to do is to try and get into a resolution with the IRS. There are different options out there for taxpayers and depending on your financial situation, you may not qualify for all of them. Some resolutions involve one payment upfront while others offer a monthly payment. You can learn about the different resolutions here!
A tax attorney can help you get into a resolution with the IRS, so you don’t have to worry about penalties and interest or the IRS taking collection action against you. The best thing to do is file your return and figure out just how much you owe. Polston Tax can help you file your tax return and then get you into a resolution that is affordable for you. Give us a call at 844-841-9857 or click below to schedule a free consultation.