Tax season can be overwhelming, and sometimes life happens, causing you to miss the tax deadline. If you’ve missed the federal tax return deadline, don’t panic — you still have options to get back on track. Understanding what happens when you miss the tax deadline can help you avoid costly penalties and interest charges and get your taxes filed with minimal stress.
Whether you’re new to online tax filing or a repeat user, ezTaxReturn is here to make the process easy, especially if you’re facing the consequences of a missed tax deadline.
In this post, we’ll walk you through what happens if you miss the tax deadline and how ezTaxReturn can help you get things squared away quickly.
What Happens if You Miss the Tax Deadline?
When you miss the tax deadline, you may face a variety of consequences, including penalties and interest on the unpaid tax amount. Here’s what you need to know about what happens if you miss the tax deadline:
Failure-to-File Penalty
The IRS imposes a failure-to-file penalty if you don’t file your return by the deadline. This penalty is typically 5% of the unpaid taxes for each month (or part of a month) your return is late, up to a maximum of 25%.
Failure-to-Pay Penalty
In addition to the failure-to-file penalty, you may also be subject to a failure-to-pay penalty if you didn’t pay your taxes by the original due date. This penalty is usually 0.5% of your unpaid taxes per month and can increase up to 25% of the total amount you owe.
Interest on Unpaid Taxes
The IRS charges interest on any unpaid taxes. Interest is calculated daily based on the federal short-term rate plus 3%. This interest compounds, so the longer you wait to pay, the more you will owe.
You can pay your tax bill online, by phone, or by mail. It’s essential to keep a record of the payment date and amount to ensure everything is documented correctly. If you cannot pay your tax bill in full, the IRS offers payment plans that can help reduce penalties and interest. Setting up a payment plan can make managing your tax debt more manageable and help you avoid further financial strain.
What If You’re Getting a Refund?
If you missed the tax deadline and are expecting a refund, there’s good news: the IRS won’t penalize you for filing late if you’re owed money. However, to claim your refund, you must file your return within three years of the original deadline. If you don’t, you forfeit the refund. It’s important to double-check the specific tax deadlines for your state, as they may differ from the federal deadline.
Even though you won’t face penalties in this case, filing sooner will ensure you get your money faster. With ezTaxReturn, you can file your taxes online in just a few simple steps, ensuring you don’t miss out on your refund.
What to Do if You Missed the Tax Deadline
If you’ve missed the deadline, here’s how to get back on track quickly:
File as Soon as Possible
If you haven’t filed yet, file as soon as possible — even if you can’t pay the full amount. If you file late, you may face additional penalties and interest, so it’s important to act quickly. The longer you wait, the higher your penalties and interest will be. Filing your return as soon as possible is your best bet to minimize these costs.
Consider Tax Software
With ezTaxReturn, you can quickly file your taxes online, from the comfort of your home, and ensure everything is done accurately and on time. Our online tax software guides you step-by-step to help you complete your return stress-free, even if it’s late. If you owe taxes, we offer simple payment options to help you avoid further penalties.
Can You Still File for a Tax Extension?
Unfortunately, you can no longer file for an automatic extension after the original deadline. However, you can still file your taxes, even if you didn’t request an extension. Just remember that an extension only gives you more time to file your taxes, not more time to pay them.
If you missed the deadline and owe taxes, it’s important to act fast. Filing late taxes can result in significant penalties and interest, so it’s crucial to act quickly. ezTaxReturn allows you to file your return online quickly, so you can avoid further delays and start the process of paying what you owe or setting up a payment plan.
What If You Can’t Afford to Pay Your Taxes?
If you’re unable to pay your taxes in full, there are options to help you manage the cost. The IRS offers payment plans, and ezTaxReturn can guide you through setting one up directly from our platform. It’s important to pay penalties promptly to avoid further financial strain.
Set Up an Installment Agreement
If you owe under $50,000 in taxes, you may qualify for an installment agreement with the IRS, allowing you to pay your taxes over time. You can set up a short-term or long-term payment plan based on your financial situation. Late payment can result in additional interest and penalties, so it’s crucial to address any outstanding tax bills as soon as possible.
Offer in Compromise
If paying your full tax bill would cause undue hardship, you might qualify for an Offer in Compromise (OIC). This allows you to settle your tax debt for less than the full amount owed.
Currently Not Collectible Status
If you’re facing significant financial hardship, you can apply for Currently Not Collectible (CNC) status. This temporarily halts IRS collection activities, such as wage garnishments or bank levies. While you’ll still owe the tax debt, it gives you some breathing room.
What Happens If You Don’t File at All?
Not filing your taxes at all is a risky move. If you don’t file your return, the IRS will likely file a Substitute for Return (SFR) for you, which typically won’t include the deductions or credits you could claim, leading to a higher tax bill.
Consequences of Not Filing
- Tax Liens, Garnishments, and Levies: The IRS can take legal actions such as placing a tax lien on your property, garnishing your wages, or seizing funds from your bank accounts.
- Criminal Charges: In extreme cases, repeated failure to file could lead to criminal prosecution.
If you haven’t filed yet, it’s critical to act quickly. ezTaxReturn can help you file your return accurately, even if you’ve missed the deadline, and help you avoid these serious consequences.
Don’t Forget State Taxes
Remember, state taxes have their own deadlines and penalties. Missing the state tax deadline can lead to additional fines and interest. Check with your state’s tax agency or use ezTaxReturn to ensure you’re also compliant with state requirements.
Conclusion
Missing the tax deadline doesn’t have to be a financial disaster. While penalties and interest may apply, acting quickly can minimize these costs and help you get back on track. Whether you’re due for a refund or owe taxes, filing your return as soon as possible is your best bet.
If you’re not sure where to start, ezTaxReturn makes it easy to file your taxes online — even if you’ve missed the deadline. With our straightforward process, fast e-filing, and access to professional support, you can handle your taxes with confidence.
Don’t let a missed deadline stress you out. File today with ezTaxReturn to minimize penalties, get your taxes done right, and keep your financial situation in check.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
