Are you concerned about missing your filing deadline? Contact us today to discuss your options and minimize your tax liability.
When Is the IRS Deadline?
Tax filers seeking an extension to file their 2021 taxes had until the original filing deadline to file for an automatic six-month extension. If you didn’t request an extension the deadline for filing has long since passed, and you may have already received letters from the IRS and your state tax agency. If you did file for an extension, the length of your extension depends upon whether you’re an individual or a business.
|Individuals, Sole Proprietors,|
and many Businesses
|S Corps and Partnerships|
|Without Extension||April 18, 2022||March 15, 2022|
|With Extension||October 17, 2022||September 15, 2022|
What Are the Penalties for Not Filing My Taxes On Time?
This also depends on your filing status. The IRS has published many pages dedicated to understanding the types and amounts of penalties owed depending on the tax situation.
For individuals, the penalty is 5% of the tax owed, assessed for each month or partial month that the payment is late, up to 25% of the total tax owed.
For S Corporations or Partnerships the way penalties are assessed depends very much upon the situation. Penalties start at $195 per shareholder per month and can increase depending on whether the business has filed for an extension or other circumstances that may apply.
The IRS will also assess interest on any late balance owed.
What Happens If I Don’t File My Taxes?
The Failure to File penalty is just the beginning of your tax nightmare. The IRS has a lot of ways to force you to pay up, including tax liens and criminal liability for tax evasion. Trust us here: if you owe, you want to pay what you owe as soon as possible.
What If I Just Can’t Afford to Pay My Taxes Right Now?
You still want to do your best to control the situation. You should definitely contact a qualified tax professional to review your situation and help you weigh your options – and you do have options. Payment plans or partial payments can help keep the penalties down while you work on getting together the money to pay your tax bill, and some penalties can even be relieved if the IRS determines that your situation merits relief, but it’s important to move fast.
Those letters will get worse and worse until you act, so don’t delay!