fbpx

Q&A: What if I can’t file my personal taxes by my IRS tax extension deadline?

Share Post

How-to-File-a-Tax-Extension-–-And-3-Reasons-Not-To

The IRS does not allow additional time to file taxes after a six month a tax extension has been granted. However, if you requested an extension for your personal taxes and cannot make the October 15th deadline, you’re not off the hook! You still need to file taxes appropriately and as soon as possible.

After October 15th, the IRS does not accept e-filed taxes. You will now need to print out all your tax paperwork and mail it to the IRS. If you have a refund coming for your personal taxes, there is no late fee or penalty for filing late.

However, if you owe a tax payment and missed the tax extension deadline, you are subject to late fees and penalties. Penalties are calculated as percentage of the amount of taxes you owe.

The three penalties you are subject to if you miss the filing deadline are:

  1. Failure to File Penalty: The failure-to-file penalty will probably be the most expensive, as it starts out at 5% for each month the tax return is not filed, up to a total penalty of 25% of your balance due. Even if you owe money and can’t pay it, you should still file to eliminate this penalty. Filing as soon as possible, even if it is after your extended tax deadline, can help keep this penalty low. If you are more than 60 days late on your extended tax deadline, this fee will be the smaller of $135 or 100% of the unpaid tax bill.
  2. Failure to Pay Penalty: If you missed your tax extension deadline, you will also be subject to a failure to pay penalty of .5% of your unpaid taxes for each month. This penalty can end up being 25% of your unpaid taxes. The good news is that if you requested an IRS tax extension for your personal taxes, and paid at least 90% of your tax bill by the original filing due date, you will not face a failure to pay penalty if you pay the remaining balance by your tax extension deadline.
  3. Interest: The amount of interest owed on your corporate business taxes will vary depending on your tax bill and how far past your tax extension deadline you file.

You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.

If you missed (or know you are going to miss) your extended tax deadline, the best thing to do is file your taxes by mail with the IRS as soon as possible to avoid increasing penalties and interest charges. If you need assistance in filing your personal taxes, Mazuma and their virtual bookkeepers can help you gather your documents and file as quickly as possible.

 

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Top 10 Things You Should Do If You File a Personal Tax Extension

Q&A: How to file an individual income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: My 6 month extension on my personal taxes is due on 10/15.  Help!

Q&A: What if I missed the IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

Ben Sutton

Ben Sutton

Ben Sutton is the founder of Mazuma USA, an accounting firm providing tax, bookkeeping and payroll services to small businesses. Since founding Mazuma, Ben has established himself as an expert in the small business world. He’s still driven by that same desire to provide accounting help to all small businesses – from photographers, bloggers and creatives to lawyers, doctors, and dentists, everyone needs affordable accounting help. Ben is a Certified Public Accountant, and a member of the American Institute of Certified Public Accountants. But Ben considers his greatest achievement and credential to be his happy wife and four children.

Suggested Articles