What If You Missed the Tax Filing Deadline?

by | May 21, 2021 | Internal Revenue Service, Tax

It is important to file your income tax returns and pay any taxes that you owe, on time. The fees and interest will continue to accumulate until your balance is fully paid. If you didn’t file your taxes by the deadline, the penalties will be much higher than if you file on time but are unable to pay on time.

If you missed the filing deadline, don’t fret, we at Senter, CPA are here to help inform you of your options, and give you the necessary tools to file your return, and pay your taxes, as soon as possible.

If you didn’t file on time, what should you do?

  • The filing deadline has come and gone. If you didn’t file your tax return or file an extension by the deadline, there’s no need to panic. Just proceed to prepare your return as normal, and file it as soon as you can.

What if you owe taxes and didn’t pay on time?

  • If you didn’t pay your taxes on time and didn’t file an extension, you will most likely owe some fees and interest on your taxes owed, as well as a penalty for late filing. The sooner you can file your return and pay your debt, the better. If you’re unable to pay the full amount, pay what you can. You can even make your tax payment online.
  • If you choose to avoid paying your taxes, the IRS will continue to fine you and charge interest until the full amount is paid. If your debt is not paid and continues to increase, the IRS can levy your wages or bank account, put a lien on your property, or, if the amount owed increases enough, you could face possible jail time (you would have to owe a substantial amount to go to jail).

What if you owe but are unable to pay?

  • If you owe taxes but don’t have the money to pay, you can contact the IRS to set up a payment plan. A payment plan, or installment agreement, lets you pay the taxes that you owe over a longer period of time. The IRS allows you to pay over the span of up to 72 months. Keep in mind, a payment plan will incur some interest and penalty charges, but it’s a great option if you’re unable to pay the lump sum upfront.
  • Applying for an Offer in Compromise is another option if you’re unable to pay your taxes owed. An Offer in Compromise is a long process that involves a lot of documentation to prove that you can’t afford to pay your tax bill. The IRS rejects most applications, but if approved, it lets you settle your tax debt. One of the major benefits of an Offer in Compromise is that you will end up paying less than what you really owe.
  • If your wages only cover your necessary living expenses, and no more, so that there is no amount for the IRS to garnish, you can ask to receive the “currently not collectible” status. This is not a permanent status, but it will temporarily delay collection. You will eventually need to pay your tax debt. To obtain a currently not collectible status, you’ll need to fill out a form and provide the required information about your assets, monthly income and expenses.
  • If you’re unable to pay the taxes that you owe, you do have options, but not every option is the most beneficial for everyone. Be sure to consult your tax professional to discuss what would be the best course of action for you.

What if you didn’t file on time, and you are expecting a refund?

  • If you didn’t file an extension, and are expecting a refund, you will most likely not owe a late filing fee. Although you will not be penalized for not filing, you will not receive your refund from the IRS until you file your return. Be sure to file sooner than later. After 3 years of not filing, you will no longer be able to receive your refund; it will be lost.

Consult a professional.

  • This entire process can be a little intimidating, and it may be difficult to understand exactly what the IRS is requiring of you. That’s why there are professionals who are ready to lend a helping hand and make this process all the more bearable. Consult with your CPA, and ask them to explain the best available options to getting you in good standing with the IRS.

 

We are always here for you if you have any questions.

Feel free to give us a call at 248-934-0550, or contact us below.

CONTACT US

9 + 12 =

Bank Reconciliations

Reconciling your bank account is a simple yet often overlooked part of one’s accounting system. Whether you are using a check register or sophisticated accounting system it’s wise to reconcile your bank account to your register or accounting program. This can be done...

Comprehensive Financial Planning: Building a Dream Team of Professionals

Building a network of well-connected financial professionals is a crucial means of personal wealth management. A dream team of experts will provide service and support towards working for and achieving your financial goals, while monitoring progress along the way....

Certified Public Accountant: Why You Need One in 2020

What does financial success mean to you? Security, peace of mind or perhaps more free time spent with family and friends probably sound right. Often times, the shape of financial success will change over the course of time (think: marriage, kids, starting a...

Senter, CPA: A Virtual Firm

Thinking about how to work with your accountant remotely? Senter, CPA was a virtual firm long before we needed to be due to the COVID-19 outbreak. From the beginning we've chosen high performance tools and technologies, which allow us to best service our clients....

Embracing Change: Virtual Accounting Services

Collaboration with your accountant or other industry professional may seem like a daunting task. The COVID-19 pandemic changed most traditional practices of getting your taxes prepared, reconciling your balance sheet or preparing financial statements. Assembling a...

Spring Clean Your Finances in 8 Simple Steps

Spring is a time of new beginnings and fresh starts. While your finances don't start over, they do change slightly year to year. If you're looking for a productive project to stay busy while you self-quarantine, then get rid of financial clutter and enjoy the peace of...

Set Yourself Up for Success: Tracking Business Expenses

I'd be willing to bet that most small business owners don't wake everyday excited and ready to conquer their books.  Perhaps, if you're like most entrepreneurs, balancing your business accounts is often ignored and becomes a sensitive subject, a stressor.  And yet,...

Three Quarterly Conversations to Have with Your CPA

The importance of establishing a strong working relationship with your CPA is crucial to feel comfortable trusting their guidance and relying on their advice. Having candid conversations on a regular basis will not only deepen your relationship with your accountant,...

Client Accounting Services

Client Accounting Services. What are they and why they are so much more than traditional bookkeeping serivces.

Senter CPA: 8 Frequently Asked Questions

As tax and accounting professionals in the financial industry, we here at Senter CPA receive lots of questions during our client consultations and reviews. Providing thoughtful advice tailored specifically to our client is our expertise.

Always remember, Senter, CPA is here for you if you need any assistance.

Don't hesitate to give us a call at 248-934-0550, or contact us below.

2025 Depreciation Limits

For the first time in the past three years, the IRS has set lower depreciation limits for passenger vehicles. These limits are updated annually for inflation.

Understanding Tax Extensions: What They Are and How They Benefit You

As the tax filing deadline approaches, many taxpayers find themselves unprepared to submit their returns on time. In such cases, filing a tax extension can be a practical solution.

Making Your Federal & State Income Tax Payments

Paying your federal and Michigan state income taxes has become more convenient with various online options.

Where’s My Refund

At Senter CPA, we understand how important it is to track your refund status efficiently. That’s why we’re providing you with a step-by-step guide to using the IRS “Where’s My Refund?” tool and Michigan’s “Where’s My Refund?” portal.

Senter, CPA 2024 Individual Tax Return Process

At Senter, CPA, we strive to make your tax preparation process seamless and efficient. Here’s an overview of our updated tax return process for the 2025 tax season: (2024 tax returns)

Beneficial Ownership Information Reporting Requirements? February 2025 UPDATE

As of February 20, 2025, the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) have been reinstated. This follows the U.S. District Court for the Eastern District of Texas’s decision on February 18, 2025, to lift the nationwide injunction that had previously halted enforcement of these requirements.

Utilizing “Rules” in QBO

There is a new reporting requirement beginning January 1st, 2024, and most businesses are now required to report. What is the beneficial ownership information report, or BOI?

2024 Senter, CPA Year in Review

Reflecting on 2024, Senter CPA has experienced significant growth and success.

2024 1099 Facts

With the end of the year rapidly approaching it may be time to think about issuing 1099’s.

Paid Medical Leave Act ( PMLA)

There is a new reporting requirement beginning January 1st, 2024, and most businesses are now required to report. What is the beneficial ownership information report, or BOI?