Maybe there was an emergency that consumed your attention, or perhaps a problem with your paperwork popped up at the last minute. Sometimes, the filing deadline just slips your mind and suddenly you realize you didn’t get your tax preparation done on time. At this point, it’s normal to start panicking as you start wondering what happens next? The answer depends on whether you still owe money at the end of the year or whether you’re expecting a refund from the IRS.

If the IRS Owes You

If you’re expecting a refund from the IRS, you have little to worry about. While the government won’t chase you down and make you take your money, they also won’t keep it just because you filed late. There is generally a penalty for filing late, but the fees are based on a percentage of the amount you owe, so if you owe nothing you pay nothing. However, if you wait more than three years, your refund will go to the U.S. Treasury.

If You Owe the IRS

Unfortunately, there are some penalties for getting your tax preparation done late if you owe the IRS money. First, there is the fee for failing to file on time, which is 5% of the amount you owe, charged every month for a maximum of five months. Failing to actually pay the tax owed, even if you filed on time, will result in a 0.5% penalty. Fortunately, you can’t be charged more than 25% of your outstanding balance, and this amount is deducted from the failure to file penalty.

If you missed the deadline, visit ZP Tax for fast service and accurate results. For many years, they’ve provided excellent tax preparation services for clients throughout Montgomery County, MD, and have the experience to ensure you get every deduction you qualify for. To get in touch and schedule a tax preparation appointment, call (301) 587-4829 today.