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!