Tax payment deadline is approaching. Income tax payment due dates for 2023 are as follows: April 15th (Unless you live in one of the states that allows automatic extensions) This means your tax return or tax extension must be completed and filed electronically or postmarked by midnight tonight.
For taxpayers who are confident they’ll get a refund when they file their 2023 taxes, missing the tax deadline could mean the only real harm will be the IRS holding on to your money longer. But if you have taxes to pay, you don’t want to wait. Penalties and interest can add up quickly.
This story is part of: taxes in 2024CNET’s top tax software, tax information, and everything you need to file your return and track your refund.
Read on to learn more about what happens if you file your taxes late, including information about penalties, interest, and payment plans. For more information, check out the best software for filing your tax return and learn how to track your refund to your bank account after you file.
What should I do if I miss the deadline and am expecting a tax refund?
If you expect to get money back from the IRS on your 2023 tax return, there is no penalty for filing late. in fact, you have 3 years left File your 2023 tax return before the IRS turns your tax refund over to the Treasury and your money is gone forever.
If your tax refund is delayed, your tax refund may be delayed, but you should still expect to receive your refund within 4 to 6 weeks.
You can make good use of the money the IRS owes you, and the longer you wait to file your taxes, the more you lose. Whether you want to use your tax refund to pay off credit card debt, build an emergency fund, make investments, or just enjoy a nice dinner or vacation (depending on the amount of your refund), you’ll want to get the money as quickly as possible. Allowing the IRS to keep your tax refund longer will only rob you of your interest and ability to spend money.
What happens if you miss the deadline and owe taxes?
If you miss the tax deadline, fail to file an extension, and fail to pay your taxes, you will likely be assessed both a late filing penalty and a late payment penalty. You will also have to pay interest on the money you owe until the debt is paid in full.
What are the fees and penalties for filing my taxes late?
There are two basic penalties assessed by the IRS if you file your taxes late when they are due: a failure to file penalty and a nonpayment penalty. Additionally, you will pay interest on the amount you owe.
that much Punishment for failure to report It hurts the most. Typically, you will be charged 5% of the amount you owe for each month or part of a month in which your return is late, with a maximum penalty of 25%. If your return is delayed by more than 60 days, the minimum penalty is $435 or the unpaid tax balance, if less.
that much unpaid fine It also costs money, but not as much. This is a great reason to file an extension on time, even if you can’t pay it. This penalty is generally calculated as 0.5% of all taxes not paid by the due date. The IRS will reimpose a penalty of up to 25% for every month or part of a month your payment is late.
The Internal Revenue Service (IRS) also prosecuted delinquent tax interest. The IRS interest rate, which is determined by adding 3% to the short-term federal rate, is currently 7%. The interest rate is adjusted quarterly and interest is compounded. every day.
Can I apply for an extension after the tax deadline?
Unfortunately. A tax extension gives taxpayers an additional six months to complete their tax return, but they must file it by the tax return deadline. The taxpayer’s filing extension must also include an estimate of the amount owed using IRS Form 1040-ES. online tax software You can also quickly calculate your estimated taxes.
If you want to file a tax extension with the IRS, you must submit it by the April 15 deadline. You may file an extension electronically by midnight (local time) on that date or by mailing IRS Form 4868 postmarked by April 15, 2024.
What happens if I apply for an extension within the deadline?
You can get an extra six months if you file for a tax extension by the April 15 deadline. If you paid an estimated amount that is close to the amount you owe, you will not be subject to any fines or penalties if you file your return and pay the remaining amount by the next day. October 15, 2024.
If you do not pay enough through a tax extension, you may be subject to a late payment penalty. The IRS expects your estimated payment to be at least 90% of your total tax liability. You should complete and file your tax return as soon as possible, as the agency may impose a penalty of 0.5% per month on the unpaid tax amount if you pay less than what you owe.
What if I can’t afford to pay the taxes I owe?
Paying taxes you don’t have the money to pay can be incredibly stressful. But you can take steps right now to ease both the financial and emotional burden.
Consider an IRS payment plan. If you can pay off your tax debt within 180 days, the IRS lets you apply for a short-term payment plan that costs you nothing. However, penalties and interest will continue to accrue until the debt is repaid. You can easily apply online or at your local IRS office.
If you need more than 180 days, you can apply for a long-term payment plan for $31 for monthly bank automatic payments via direct deposit or $130 for non-automatic bank payments. Low-income taxpayers (those whose adjusted gross income is 250% or less of the federal poverty guidelines) can waive the Direct Debit installment fee or pay the $43 non-Direct Debit fee.
You may also want to consider other loan options other than the IRS. If your tax liability isn’t too high, you can use a credit card with a 0% introductory APR to pay your taxes, assuming you can pay off that debt before the introductory period expires. If you have large tax debt, you may consider a debt consolidation loan, but the interest rates may be higher than the 7% currently charged by the IRS.