It’s never too early to prepare for tax day, especially since missing the deadline could mean facing harsh penalties. Although the deadline for filing income tax returns has been extended due to recent circumstances, it doesn’t mean you have to wait until the last minute to get everything in order. Here’s what you need to know when it comes to filing taxes past the deadline.

Penalties

The penalty for failing to file and pay your income tax on time will depend on how late you are, but you can expect interests and other fees to take effect the day after the deadline. Be aware that even though the consequences of filing late and paying late are different, they are both against the law. If you file your taxes late, the Internal Revenue Service (IRS) will charge you 5% of your unpaid taxes for each month you are late. Additionally, if you don’t pay the full tax amount by the deadline, you will be charged with a 3% interest rate. To avoid dealing with severe penalties, you should file your income tax return by the deadline, even if you can’t pay your balance yet, or request a federal extension.

Take note that the charges don’t apply if you file late but are expecting a refund. Nevertheless, you must be sure that you are owed a refund because if you discover that you owe taxes, you will have to deal with the interests and penalties. Even if you are only a day late, it will be considered as an entire month late, and corresponding charges will apply. For this year, the deadline for tax filing and payment has been extended to July 15, but refunds will be processed as usual.

Remedies

File your taxes as soon as you can if you missed the deadline to avoid the accumulation of fees and interests. Doing so is better than not filing at all and ending up with liens placed on your property, wage garnishment, and even jail time. If you already know ahead of time that you can’t make the deadline, you can apply for a federal extension and get an additional six months to file both federal and state income tax returns. Make sure to do this before the tax deadline, or better yet, consult a tax attorney who can give you qualified advice regarding your situation.

If you need reliable, professional help with tax preparation and income tax issues, contact Lance S. Cox, Attorney at Law in Cincinnati, OH. For decades, Lance S. Cox and his dedicated team have provided clients with excellent legal advice and services when it comes to taxes, wills, probates, and estate plans. Call (513) 528-6000 today to schedule a consultation and avoid late tax filing, or visit their website to send a message online.