- 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

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Economics 101

Intro to economics. But fun.

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

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.

Add a Comment

*0 / 3000 Character Maximum