If you missed the tax filing deadline, you should still file your tax return in order to prevent costly legal and financial punishment from the IRS. While missing a tax filing deadline is not the end of the world, there are a number of negative consequences to be aware of, such as the penalties that you may incur for not paying or filing, and what will happen to your refund if you are owed one but do not file your return.
It is important to understand the different levels of punishment that you may face for not filing your taxes, which include:
- Failure to File Penalty . The longer you wait to file your taxes, the larger the penalty. If you wait too long, your total tax liability can increase by as much as 25% in penalties and interest. There is no logical reason to give the IRS this extra money.
you have paid enough in taxes. For the IRS, the statute to collect outstanding taxes does not begin until after you have filed your return.
Regardless of the reason why you have not filed your taxes, you should file as soon as possible. Depending upon your situation, you should consider hiring a tax professional. Below is a guide on selecting a tax professional depending upon your tax situation.
- No Taxes Owed, Just Unfiled Returns: If you have a simple return it could be in your best interest to go to a tax prep location such as H&R Block, Liberty Tax or a local tax preparer. If your tax return is a bit more complex then it is a good idea to seek out a local CPA to help you file your return.
Also, if you are unable to pay your tax liability in full. it is especially important that you file your taxes ASAP. Not filing and not paying your taxes will quickly increase your total tax bill. The penalties for not paying but filing your taxes is about 10 times less than if you were to not file and not pay.