April 15 is usually the annual deadline for most people to file their tax return and pay anything they end up owing the IRS. Although tax day is the same every year, it’s not uncommon for many to find themselves seeking tax return preparation services at the last minute. Below are some of the most frequent inquiries taxpayers have about failing to file on time. 

Common Questions Concerning Late Tax Returns 

Why Is It Important to Avoid Filing Late? 

Generally, it’s best to get your tax return preparation done as soon as possible to ensure you don’t risk losing any refund or tax credit you are entitled to. These must be claimed within three years of the return deadline. It’s also important to make sure you file if you’re self-employed so you can receive credit towards disability benefits and Social Security retirement. 

What Is the Penalty for Filing Late? 

The IRS assigns penalties only after carefully evaluating each unique situation. They assess every late return individually to determine what consequences the filer will face. As a general rule of thumb, there will be no penalty if you are receiving a refund and file within three years of the original deadline or if you have filed an extension. A 5% penalty will apply if you owe taxes, with the percentage increasing for every month it’s late. Interest will also accrue on top of penalties. 

Is It Ever Too Late to File a Return? 

While you should always file immediately even if you don’t have the money to pay what you owe, it is never too late to get help with tax return preparation. The tax year never closes until you file that return. However, you can only e-file for up to six months after the deadline, and then your return must be mailed in. 

Can I Go to Jail for Filing Late?

As long as you make a valid effort to file your taxes accurately and on time, chances are the IRS won’t pursue criminal charges for failing to file. Though you may receive a letter inquiring about your returns, this doesn’t mean you’re under investigation. In most cases, the IRS works to help get people back in compliance with tax laws. 

If you need additional information about filing your taxes, don’t hesitate to reach out to Burch & Associates, Inc. Their knowledgeable team of Enrolled Agents can address any questions and concerns you have. For years, they have provided individuals and businesses in Lincoln, NE with reliable tax return preparation services. Their vast industry experience makes them the perfect partner to help you achieve your financial goals. Call (402) 483-4791, or visit their website to learn more about how they can help maximize your tax deductions and minimize your liabilities.