Paying taxes can be hectic…but missing the deadline for them can be even worse.
With added fees and other paperwork thrown into the mix, people often worry about how much trouble they’ll be in, as well as if they might end up in jail (you won’t). While it’s a serious thing to get your tax filings in faster than you can say 1099, it’s not necessarily going to paralyze you. That’s why we’re breaking down what you should do if you missed the July 15th deadline. Check it out below:
While you might be thinking it’s the end of the world for missing the deadline, it’s a simple problem to fix; however, one that you want to get going on quickly.
Generally speaking, the earlier you deal with the IRS, the better, as you’re likely to incur fewer fees. As noted by Nerdwallet, the fees for missing your filing can range from 0.5% per month, all the way up to a 25% maximum of the total bill. Additionally, the IRS can also tack on a late filing fee of 5% as well. Considering taxes are a certainty, the more you put off filing, the worse your situation could possibly be. Instead, knockout the paperwork, focusing on the money owed after the fact.
After you’ve gathered your forms for filing, learn if you owe money or will receive a refund. If it’s the latter, then you’re in a pretty good position, with the IRS most likely holding your funds until your forms are filed. However, owing money puts you in a little bit more of a complicated position.