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Tax time has come and gone and if you missed the April 15 filing deadline you may be wondering about next steps. Failing to file your taxes on time could come with penalties. In fact, the IRS imposes a failure to file penalty equal to 5% of the amount you owe for each month your return is late (capped at 25%). And if you’re owed a refund, and you fail to file your tax return, you probably won’t be penalized, but you also won’t receive your money.
If you weren’t able to file your taxes by the April 15 deadline, you may be at a loss for what to do next. But failing to do anything could come with further penalties or the forfeiture of your refund. So, what should you do now?
Compare your tax relief options now to get back on track with the IRS.
Missed the tax filing deadline? What to do now
If you missed the April 15 tax filing deadline, it’s important to file your tax return with the IRS as quickly as possible. After all, the longer you fail to file, the more the IRS may charge you in penalties. The good news is that you don’t have to address your late tax return on your own. Instead, it may be wise to work with a tax relief service.
How tax relief services can help you navigate and file late tax returns
Tax relief services typically follow a well-defined process for the management and filing of late tax returns. That process usually starts with a representative of the company gathering the information the company needs to file your past-due tax return on your behalf.
If you don’t have all the information they ask for handy, don’t worry. The IRS maintains a backup file of all tax documents it receives that goes back several years. That file, known as “records of account,” should have all the information your provider needs. Tax relief companies “can determine certain facts from master file transcripts, available for those years where the IRS has prepared a substitute return,” according to Optima Tax Relief, a leading tax relief provider.
Next, the tax relief company will generally complete your return and submit it to the IRS. The final step is simply to “keep an eye on the return for processing and other compliance activities,” according to Optima Tax Relief.
Get help navigating the complexities of a late tax return filing today.
What to do if you owe back taxes
If you owe money to the IRS, the last thing you should do is ignore the bill. After all, you may face failure to file, failure to pay and other penalties if you ignore your tax debt. The good news is that even if you owe more money than you can afford to pay, a tax relief service can help you come to an affordable settlement or payment agreement with the IRS. Here’s how tax relief services may be able to help:
- Penalty abatement: Tax penalties can be difficult to stomach – especially if you owe a significant amount of money to the IRS already (the more you owe, the higher the dollar amount the IRS’s percentage-based penalties are). However, the IRS may be willing to waive some or all of the penalties it has imposed on you. Your tax relief service can help you navigate the penalty abatement process.
- Payment plan setup: If you can’t afford to pay your past due tax debt off in one lump sum, your tax relief provider can work with the IRS on your behalf to set up a payment plan you can afford. These payment plans, known as installment agreements, may make it possible to pay your tax debt off over time with affordable monthly payments.
- Offer in compromise: If you don’t have the income, assets or means to pay your past due IRS debt off either immediately or through an installment agreement, your tax relief provider may be able to reach a settlement with the IRS through an offer in compromise (OIC) agreement. As part of an OIC agreement, the IRS may accept a lesser amount of money than what you owe to clear your tax debt.
- Currently not collectible: If you’re experiencing financial hardship and are unable to make monthly payments toward your IRS debt, your tax relief provider may be able to get the IRS to declare your account “currently not collectible.” This will stop all collections measures on your account to give you time to get back on track financially. Though, the IRS will perform periodic checks on your financial situation to determine when your account may be collectible in the future.
The bottom line
If you missed the April 15 tax filing deadline, you could face penalties that grow with each month until you file your tax return. And navigating the complexities of filing a late tax return can be challenging. But, a tax relief professional may be able to help.
Beyond helping you file your past-due tax return, tax relief companies may be able to help get your penalties waived, set you up on an affordable payment plan, settle your tax debt or even have the IRS change the status on your account to currently not collectible. Reach out to a tax relief expert now to find out how much relief you might qualify for.
