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Maybe you couldn’t find one of the essential documents or were overwhelmed by the complexity of your taxes—sometimes the filing deadline just sneaks up on you, catching you unprepared to send in your tax returns. Regardless of why you missed the deadline, you’re probably wondering what happens next. Below is a brief explanation of how the IRS imposes penalties for late filing and why you should act as soon as possible.

What to Do After Missing the Tax Filing Deadline

The IRS levies two separate penalties for filing after the deadline: one for late filing and the other for late payment. For late filing, the penalty is 5% of the unpaid tax per month up to 60 days. For those who fail to file within this second deadline, they’ll be charged a minimum of $210 or 100% of their tax balance, whichever is less. Those owing more than $210 can earn a maximum fee of 25% of their tax balance. 

tax returnsThe fee for late payment is 0.5% of your unpaid tax per month, up to a total of 25%. Fortunately, if you owe both fees, the penalty is capped at 5% per month, although interest charges will continue to accrue on your unpaid balance.

How to Minimize Penalties

The fee for late filing is generally higher than the penalty for paying late, so it’s best to file your tax returns as soon as possible, even if you can’t afford to pay right now. A skilled professional can help get your taxes in order, especially if the difficulty of your returns is why you missed the deadline in the first place. In many cases, they can help negotiate a payment schedule with the IRS or even get your burden reduced.
 

If you didn’t get your tax returns in on time, turn to Selph and Friday, CPA in Texarkana, TX. With over 30 years of experience and a reputation for speed and accuracy, you can rely on their team to help you file as soon as possible, rather than incurring more fees. Visit their website for more on their services or call (903) 792-0281 to make an appointment.

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