If You Missed The Tax Filing Deadline, You Have Options To Consider

The end of tax season was officially April 18, 2022, which means the IRS is diving into enforcement mode and catching up on notices.

What should you do, and what should you expect if you missed the filing deadline?

The Good news is that there is no penalty for filing a late return after the tax deadline if a refund is due. However keep in mind If you didn’t file and you owe taxes, you definitely will want to file a return as soon as you can and pay as much as possible to reduce penalties and interest.

Now, if you have a history of late payments or have several years of backed up taxes, then you will want to consider a few options in resolving your tax debt.

One-Time Penalty Relief

If you have a history of late payments and are still able to make payments on time, you may be able to get one-time penalty relief. This type of relief can reduce your total owing amount.

If You File Late, It Can Impact Your Refund

Even though your return is late, it’s still important to file it as soon as possible to avoid owing a huge amount of money. If you filed late, you might be able to get a smaller refund or even a balance offset. If you qualify for this type of relief, you will not owe any money and will receive the full refund.

The IRS has a huge backlog so it’s important that the returns are e-filed as soon as possible to avoid delays.

If You File Late, You May Be Penalized

Late filing penalties are based on how long you’ve been late. If you’re late, you could end up owing a huge amount of money. The IRS will also take more serious action if it discovers that you’re not paying the correct amount. Some of these include the possibility of getting a lien placed on your property, or even having your wages garnished.

What About Tax Debt Relief?

If you have multiple tax returns that are several years behind, and accounts that were previously assessed, professional from a tax relief debt expert is highly recommended. Tax debt relief is available for many cases, in the form of payment agreements, offer in compromise, penalty abatement, and innocent spouse relief.

Here at Babbitt Tax Law, we can help you with your tax issues.

We will consider your financial situation & other criteria during our initial consult to determine which tax relief plan you qualify for and ensure adherence to the IRS’s rule & regulations that includes periodic assessment of your financials, agreeing to all terms of the plan and the commitment in remaining current on up and coming tax years. Give us a call today to help guide you in the right direction in resolving your past due IRS tax issues.