What To Do If You Missed The Tax Filing Deadline

So you missed the date deadline to file your tax returns - what now?

April 18, 2016 was the deadline to file income tax returns for 2015. If you missed filing by that date and did not file an extension you are officially delinquent.

all is not lost, but the longer you wait to file those delinquent returns the more tax issues you may have to deal with.

If you think you are owed a refund, the sooner you file your income tax returns the quicker you will get that refund. There is however a three year statute of limitations for claiming a refund. No penalties should be assessed by the IRS.

If you think you owe taxes you may be assessed one or both of the following penalties:

• late payment penalty


• failure to file penalty

in addition to the above you may be assessed interest on any unpaid taxes due.

The amount due to the IRS can add up pretty quickly, so it is really in your own interest to file those tax returns as soon as possible. For instance "If you simply owe the IRS money, you'll pay interest on the outstanding balance. The rate can fluctuate over time, and it's currently 3% per year. You'll also face a late-payment penalty of 0.5% of your outstanding balance for each month your payment is late, up to a maximum of 25%. On the other hand, the failure-to-file penalty is much more severe — 5% of the outstanding balance for each month or partial month you're late, up to the same 25% maximum." [source]

Reasonable Cause

If you had a reason that falls under the guidelines for IRS reasonable cause, you may be able to get a waiver for any penalties due. An example would be if you had been hospitalized duriing the time tax returns were due.

Options If You Cannot Pay

If you cannot pay the taxes due the IRS does offer options for tax payments, in addition to installment payments if you are undergoing a hardship and cannot pay tax then there are programs available whereby you can pay a portion of the taxes due to settle the total amount due. To see if you would be eligible for any of these programs please contact us.