The deadline to file taxes for 2018 tax year was on April 15, if you haven’t filed your tax return by the deadline nor filed a tax extension, you must be asking yourself the question ” What to do If I missed filing an extension”. Here are a few things that might help your situation so you will not be in as much as trouble you think and be away from the most penalties.
File Your Taxes Anyways
If you haven’t filed your tax return to the IRS by the April 15 deadline, it is highly likely that you will get hit by a failure-to-file penalty which starts at 5% of how much taxes you owe but maxes out at 25% of your total tax bill. However, if you won’t file your taxes within 60 days, you will be charged $135 fee or 100% of the taxes you owe, it depends on whichever one is less. So the best thing to do is to file your taxes anyway because more days pass by where you don’t file your taxes, it is more likely that the penalties will get more severe.
Know The Difference
There is a huge difference between not filing your taxes and not paying your taxes. The Internal Revenue Service is actually very helpful for those who filed their taxes but are unable to pay it. The IRS can put you on a 120 days window where you are able to make payments instead of paying the entire bill at once. Think of it as a savings account.
If you owe less than $50,000 to the IRS and need more than 120 days to pay your taxes, you can fill out the IRS Form 9645 to install a payment plant. This is called Installment Agreement Request, the IRS will then put you on a payment plan which can last as long as six years.