What Happens If You Miss the Tax Filing Deadline?

The annual tax filing deadline in the United States is circled on many calendars, often met with anticipation (for a refund) and apprehension (for taxes owed). While many taxpayers diligently prepare and submit their returns on time, life sometimes throws curveballs, leading to miss tax deadline. Understanding the consequences of failing to file your federal income tax return by the due date is crucial to mitigate potential penalties and interest charges. While the provided sources do not comprehensively outline all repercussions to miss the tax filing deadline, they offer insights into related areas such as penalties, estimated taxes, and IRS resources, which, combined with general tax knowledge, can paint a clear picture of what happens when you don’t file on time.

miss tax deadline

The Standard Tax Filing Deadline and Extensions

Typically, the deadline to file your individual income tax return (Form 1040) is April 15th of the following year. If this date falls on a weekend or legal holiday, the deadline is shifted to the next business day.

Recognizing that preparing tax returns can be complex and time-consuming, the IRS provides an option to request an extension of time to file. While the sources don’t detail the extension process, it’s a fundamental aspect of tax administration. Generally, you can request an automatic extension of six months to file your return by submitting Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by the original filing deadline. Understanding that an extension to file is not an extension to pay is crucial. If you owe taxes, you must still estimate your tax liability and pay it by the original deadline to avoid penalties and interest.

Penalties for Failure to File

One of the primary consequences to miss the tax filing deadline (without a valid extension) is the penalty for failure to file. This late tax filing penalty is calculated as 5% of the unpaid taxes monthly or part of a month that a tax return is late, but not more than 25% of the unpaid taxes. If the return is more than 60 days late, the minimum penalty is either $485 (for 2024, and this amount is subject to inflation) or the amount of tax owed, whichever is smaller.

It’s important to note that this penalty is based on the amount of tax you owe. If you are due a refund, you generally will not be penalized for filing late. However, there is a limit on how long you can wait to claim your tax refund. If you don’t file your tax return within 3 years of the original tax filing due date, you loose your right to claim the tax refund, and the money becomes the property of the U.S. Treasury.

Penalties for Failure to Pay

In addition to the failure-to-file penalty, if you owe taxes and don’t pay them by the original deadline (even if you have an extension to file), you may also be subject to the penalty for failure to pay. This penalty is 0.5% of the unpaid taxes for each month or part of a month that the taxes remain unpaid, but the penalty is capped at 25% of your unpaid liability.

The failure-to-pay penalty is separate from the failure-to-file penalty. However, if both penalties apply in the same month, the failure-to-tax file penalty is reduced by the amount of the failure-to-pay penalty. This means that the combined penalty for failure to file and failure to pay will not exceed 5% for any given month.

Interest Charges

Beyond penalties, the IRS also charges interest on underpayments, starting from the return’s original due date until the tax is paid. The interest rate can fluctuate and is applied to both unpaid taxes and any penalties assessed. This means that even if you eventually file your return and pay the taxes owed, you will likely owe additional interest.

What to Do If You Miss the Tax Deadline

If you realize that you have miss the tax filing deadline, the most important thing to do is to file your return as soon as possible. Even if you cannot afford to pay the full amount of tax due, filing on time (or as soon as you can) will help minimize the failure-to-file penalty.

Once you file, you should explore options for paying your tax liability. The IRS offers several payment options, as indicated on their website:

  • Online payment through IRS Direct Pay from your bank account.
  • Payment by credit cards, debit cards, or even digital wallet.
  • Payment by mail with a check or money order.
  • Electronic Federal Tax Payment System (EFTPS), particularly for businesses.

If you cannot pay your taxes in full, you should consider setting up a payment plan (installment agreement) with the IRS. This allows you to make scheduled monthly payments for up to 72 months. You can apply for a tax payment plan online through the IRS website or by submitting Form 9465, Installment Agreement Request. While interest and late penalties will continue to accrue on the unpaid balance, establishing a payment plan demonstrates your willingness to pay and can help avoid more severe collection actions.

Importance of Filing Even If You Can’t Pay

It’s crucial to understand that failure to file carries a significantly higher penalty than failure to pay. Therefore, if you cannot pay your taxes by the deadline, you should still file your return or request an extension. Filing will stop the more severe failure-to-file penalty from accruing, and you can then focus on working out a tax payment arrangement with the IRS.

Consequences of Repeatedly Miss Tax Deadlines

While a one-time oversight in miss the tax filing deadline can usually be resolved by filing promptly and paying any penalties and interest, repeatedly failing to file or pay on time can lead to more serious consequences. The IRS may become more aggressive in its tax collection efforts, which could include:

  • Notices and demands for payment.
  • Liens on your property are public notices to your creditors that the IRS has a claim against your assets.
  • Levies on your wages, bank accounts, or other property, allowing the IRS to seize your assets to satisfy the tax debt.

Prior-Year Tax Filing

As mentioned in our previous conversation, you can still file tax returns for prior years. If you miss the tax deadline for a past tax year, you should file that return as soon as possible to minimize penalties and interest. However, keep in mind the three-year limit for claiming a refund.

Estimated Taxes and Underpayment Penalties

The sources highlight the importance of paying estimated taxes throughout the year for income that is not subject to withholding, such as self-employment income. Failing to pay enough estimated tax can result in an underpayment penalty, even if you file your annual return on time. This underscores the importance of understanding your tax obligations and making timely payments, whether through withholding or estimated taxes, to avoid penalties.

Conclusion

Miss the tax deadline for tax filing can lead to significant financial repercussions in the form of penalties and interest charges. While the IRS offers options like extensions and payment plans, it is always best to file and pay your taxes on time. If you find yourself facing a miss tax deadline, taking immediate action to file your return and address any outstanding tax liability is crucial to minimize the potential consequences. Utilizing the resources available on the IRS tax website and understanding the penalties associated with late filing and payment are essential steps in managing your tax obligations effectively.

2024 Remaining Tax Days: Tax Filing by October Deadline

As of Tax Day, which fell on April 15, 2024, individuals were expected to file their federal income tax returns. However, there are exceptions to this deadline. If an extension was requested by April 15, the new deadline for tax filing is October 15, 2024. Most taxpayers were required to file their 2023 federal income tax returns by the original Tax Day. While the mid-April deadline applies in most cases, there are exceptions to be aware of. Additionally, it is important to familiarize yourself with other significant tax deadlines and the timeline for receiving any refunds owed to you. Find your free dedicated tax professional from Rapid Tax who will walk you through from start to finish for tax filing in October.

Can I E-file Taxes Electronically Even After April 15?

Filing tax returns electronically is allowed until November each year, with the specific deadline usually confirmed in October. An extension can be requested through Form 4868, granting a filing deadline of October 15. In cases where this date falls on a weekend or holiday, the filing deadline extends to midnight of the following business day.

Can I File My Tax in October?

If you missed the 2024 tax deadline or could not complete your tax return on time, opting for a six-month extension using Form 4868 shifted your filing deadline to October. It is crucial to note that tax extensions extend the filing deadline but not the payment deadline.

tax october

What If I Haven’t Filed for a Tax Extension Already?

Should you be entitled to a refund, you won’t face any penalties from the IRS for submitting your return after the deadline. Nevertheless, it is advisable to file promptly to expedite the refund process. It’s essential to be aware that while there may not be repercussions for filing late, it is probable that you are still required to submit a return. The IRS establishes clear criteria for individuals obligated to file a tax return, including annual income thresholds and other considerations.

In the event that you find yourself in debt to the IRS without having requested an extension and are now approaching your tax obligations belatedly, it is important to be aware that penalties and interest will start accumulating. The IRS advises promptly making an initial payment toward your owed amount to minimize the impact of penalties and interest. Should you be unable to settle your tax liability in its entirety, the IRS suggests making a partial payment and arranging for an installment agreement.

Can I File My Tax in October?

Upon obtaining an extension on Tax Day, the revised deadline for tax filing your taxes is now set for Tuesday, October 15, 2024. Extending the deadline allows additional time to complete the filing process but does not extend the time frame for tax payment. It is important to note that any outstanding tax obligations or a reasonable estimation of the owed amount were originally due by April 15.

What Are The Other 2024 Tax Deadlines Remaining To Know?

Tax Deadline by October 15:

Deadline extension for taxes. By submitting a request for an extension before the initial April 15 deadline, you gain an extra six months until October 15 to complete and submit your tax returns. Failure to meet this extended deadline will result in the IRS viewing your return as tardy, subsequently triggering penalty accrual.

The deadline for making contributions to SEP and Simple IRA, Solo 401(k) retirement plans is approaching. Individuals who have set up any of these self-employment retirement plans and requested a filing extension in April can take advantage of the extended deadline until October 15 to make their last contributions for the 2023 tax year.

Tax Deadline by December 31:

As the year draws to a close, it’s important to note the upcoming deadline for 401(k) contributions. When you invest in a company-backed retirement scheme such as a traditional or Roth 401(k), December 31 marks the usual cutoff date for making a valid contribution. In the fiscal year 2024, the maximum allowable contribution stands at $23,000.

RMD deadline Charitable donations deadline: in order to meet the deadline for Required Minimum Distributions (RMDs), it is essential to complete the process by December 31. For individuals who choose to itemize deductions and aim to make charitable contributions to lower their taxable income, December 31 marks the final opportunity for the 2024 tax year to do so.

Can I Still File A 2019 Tax Extension?

tax extension deadline

This tax season has been swamped with one situation after another.

Countless taxpayers may be stressed out with taking care of their families, working from home (if they’re able to), and trying to adjust to their daily lives. With filing a tax return being the last thing on their mind, the July 15 deadline came as fast as it left.

If you find yourself worrying about needing extra time to file, don’t worry, we’re here to help.

Filing a tax extension

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