Generally, if you miss the filing deadline or don't file your application before the tax extension deadline, the IRS may charge you a penalty for not filing your return. The penalty is based on your unpaid taxes and the IRS charges 5% of your taxes due for each month or part of the month you don't file your tax return. However, the maximum amount that the IRS can charge you is limited to 25% of the taxes due. The best thing to do, of course, is to remember to file and pay on time.
If you are going to be late and don't meet the deadline for requesting an extension, you should make an effort to file your return, as the penalty for not filing the application is much higher than the penalty for non-payment. If you miss the tax filing deadline and haven't filed an extension, you'll start accruing interest and penalties. There are penalties for both not submitting the application and for not paying. If you haven't paid all of your tax liability by the deadline, you'll be subject to both.
The IRS will begin its collection process. If your taxes remain unpaid long enough, the government can impose a tax on your property or seize your assets. It's a good idea to file your taxes after the due date, even if you're expecting a refund, but you don't want to wait too long. Because the IRS evaluates penalties for not filing and for not paying separately, filing your tax return on time at least saves you the chance of not filing the return.
The IRS does not have a set schedule for filing overdue returns; you can file a prior-year tax return at any time. Keep in mind that if you don't owe money to the IRS, but rather you are owed money, the tax agency can still wait for you to file a return. Even when you file a timely extension with the IRS, remember that this does not extend the deadline for paying or avoid penalties. Whether you pay what you can or nothing when you file your return, you will receive an invoice with the balance due and information on how to start a payment plan.
IRS electronic filing is now closed, but you can still file your taxes by downloading the TurboTax software and printing and mailing your tax return. However, if you expect to receive a tax refund, you must file it within three years of the due date to get your tax refund. If you know you can't pay in full, request a payment extension and pay as much as possible, even if that means saving. If you are due a refund, no penalty will be imposed, but if you owe the IRS and the State of California, the penalties are calculated on all the amounts due, so even if you can't pay, you should file a request to reduce the penalty for not filing the application.
After you file a valid tax extension, you have until mid-October of the same year to file your tax return. If you file an extension, make sure that you have paid enough taxes so that you are not due taxes or that you are owed a refund when you are about to file your return. If you owe any of these fines, pay the penalty for not filing the application first, since it is the most important one or both. In months in which both the penalties for not filing the application and for not paying apply, the penalty for not submitting the application is reduced by 0.5% (the same amount as the penalty for non-payment).
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