Monday, April 22, 2013

What to Do If You Missed Filing by April 15th

Getting your taxes filed by the April 15th deadline is very important. That said, sometimes life gets in the way, we procrastinate a little too long or maybe finances aren’t available to pay the taxes due so the deadline just gets ignored. Whatever your reason, the reality is that there will be negative repercussions as a result of the failure to file on time or request an extension by the deadline. Your next steps are very important.

First and foremost, do not ignore the situation! Ignoring the problem and letting it fester will only make a problematic issue become a monster. You will stress over the possibilities, and the penalties will get worse. Get a hold of a professional tax advisor and get started correcting the situation right away. Every day you delay will cost you money.

Filing and paying taxes due after April 15th will most likely result in late-filing penalties and late-payment penalties. That’s two penalties, not just one! In addition, there will probably be an interest charge on the amount of money owed that has not yet been paid. That interest is compounded on a daily basis, so every day you wait makes the situation worse.

If you are not able to pay the full amount that is due the IRS, pay what you can immediately and then pay the remaining money when you can. This will reduce the amount of penalty and interest charges that will be incurred against you. You may want to consider taking out a loan or using a charge card to make a full or partial payment to again reduce the penalty and interest charges. Another option is to request an installment payment plan with the IRS. A tax professional can assist you in making those arrangements.

When you do file, it is a good idea to use the e-file option, which is available for use through October 15, 2013. This is a safe and accurate way to file your return and you receive an immediate confirmation that the IRS has received your return. Just be sure to send any sums owed to the IRS immediately upon filing the return. If you will be receiving a refund, using e-filing will result in the quickest turn around for receiving your refund. The average refund is issued within 21 days of receipt of an e-filed return.

Do yourself a favor and take action today if you missed the April 15th deadline. Time is money and quick action will save you dollars in the long run!

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