- Days left

Miss the Final Tax Deadline? Here's What You Must Do

×
Tax Form 1040
Getty Images
By Bonnie Lee

According to the IRS, more than 12 million individuals requested the automatic six-month extension. Whether all of them complied and filed to hit their new deadline is another matter. If you missed the deadline for filing, you will be penalized unless you fall into the following categories:
  1. You are a member of the military or others serving in Afghanistan or other combat zone. You are granted an additional 180 days after leaving the combat zone to both file returns and pay any taxes due.
  2. People with extensions in parts of Colorado affected by severe storms, flooding, landslides and mudslides have until Dec. 2, 2013 to file and pay.
Not having the funds to cover your tax liability is not a viable excuse for not filing a return. Not only will you incur a failure-to-pay penalty if you fail to file a return, but you will also suffer a failure-to-file penalty. If you owe money to the IRS, immediately file the tax return to minimize the failure-to-file penalty.

According to the IRS, the failure-to-file penalty is generally more than the failure-to-pay penalty. You can reduce additional interest and penalties by paying as much as you can with your tax return. Try for a loan or file IRS Form 9465 to set up an installment agreement to make payments. The IRS will work with you.

Through the Fresh Start Program, taxpayers can set up a payment agreement with the IRS online within a matter of minutes. If you owe less than $50,000, simply go to Individuals Online Payment Agreement Application and follow the step-by-step process to set up a payment plan.

The penalty for filing late is normally 5% of the unpaid taxes for each month or part of a month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25% of your unpaid taxes.

The Fresh Start Program is also designed to allow taxpayers suffering undue hardships to skip payment of taxes while they get their lives back in order. Simply contact the IRS and ask to be deemed currently noncollectable. You will be required to provide information about your finances in order for them to evaluate your request.

Bonnie Lee is an Enrolled Agent admitted to practice and representing taxpayers in all fifty states at all levels within the Internal Revenue Service. She is the owner of Taxpertise in Sonoma, CA and the author of Entrepreneur Press book, "Taxpertise, The Complete Book of Dirty Little Secrets and Hidden Deductions for Small Business that the IRS Doesn't Want You to Know." Follow Bonnie Lee on Twitter at BLTaxpertise and at Facebook.

Increase your money and finance knowledge from home

Building Credit from Scratch

Start building credit...now.

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

TurboTax Articles

What is Form 1095-C: Employer-Provided Health Insurance Offer and Coverage

The Affordable Care Act, or Obamacare, requires certain employers to offer health insurance coverage to full-time employees and their dependents. Further, those employers must send an annual statement to all employees eligible for coverage describing the insurance available to them. The Internal Revenue Service (IRS) created Form 1095-C to serve as that statement.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

What are 1095 Tax Forms for Health Care?

The Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum