Did You Miss the July 15 Tax Deadline? File Now to Reduce Penalties
If you missed the July 15 tax deadline without requesting an extension to October 15, the IRS is reminding taxpayers to file as soon as possible to reduce penalties and interest. Penalties and interest apply to taxes owed after the extended July 15 deadline.
The failure-to-file penalty is 5% of the tax owed for each month or part of a month that a tax return is late. If a return is filed more than 60 days after the due date, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less. The basic failure-to-pay penalty rate is generally 0.5% of unpaid tax owed for each month or part of a month. Late filing and late payment penalties add up quickly, so it is important to file and pay as much tax as possible.
Taxpayers who can’t afford to immediately pay the taxes should still file a tax return as soon as possible in order to reduce possible penalties. The IRS may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise, or by temporarily delaying collection by reporting your account as currently not collectible until you are able to pay.
If you need assistance filing your taxes, contact us today to discuss your situation with a tax professional.
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