There was a tax extension deadline for the 2021 tax year that was on October 17th. While many people were scrambling to get ready for that, there were certainly some people that more than likely missed it. This an leave you wondering what your next step should be. Mark Dicus & Company is here to walk you through what your next steps should be with the IRS.
File Taxes as Soon as Possible
You may be wondering if you should still file if you have missed the deadline. The answer is always yes. You should file as soon as possible. The sooner you file, the better off you are going to be. If your income was under the IRS filing requires of 12,500 per single filer and 25,100 for those that are married and filing jointly, you should still see if you can take advantage of a refundable tax credit such as the earned income tax credit. It is worth checking into. Every year the IRS has nearly $1 billion in unclaimed refunds.
Penalty if You Miss the Tax Return Deadline
For those of you that have a tax refund coming, you don’t have to worry about any penalties or fees from the IRS. However, if you owe taxes, that is a different story. If you have a balance due to the IRS, you will unfortunately be subject to three different penalties. First, the failure to file penalty, second is the failure to pay penalty, and finally there will be interest that you owe. The interest that you are going to be owing will depend on how long it takes you to pay the money to the IRS. It will start out at 5% and then will go up each month that you don’t pay. This could get as high as 25% if you fail to pay in a timely manner.
Hardships Don’t Make Much of a Difference
While it may seem like those that are experiencing a hardship should be somewhat exempt from the penalties that come with filing late, that isn’t usually the case. If you can find some way to show the IRS that there was reasonable cause for you not filing, they have been known to occasionally waive the fees and penalties. However, this is going to need to be a legitimate cause for not filing. If you don’t, you can expect no sympathy from the IRS on your behalf. If you were a victim of a federally declared natural disaster, you may find some sympathy as well.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have any questions about your taxes and what you owe the IRS, you can turn to Mark Dicus & Company to help you sort it all out. We have the expertise needed to ensure your tax return is right and ready to file. We will make sure that you are taking advantage of any tax credits that are available to you. Call us today!