As of midnight tonight, the tax extension deadline for 2021 will have officially passed. If you filed for an extension but have yet to file, that probably means you’ll have missed the deadline. So what should you do now?
You shouldn’t take lightly any missed IRS deadline, because they often bring serious consequences with them. A missed deadline can bring serious penalties along with it, which can set you down a bad path from missed deadline to spiraling tax debt.
But just because you’ve missed the tax deadline, doesn’t mean all is lost. With the right actions taken now, you can minimize the bad and get yourself back on the right track. We just wanted to chime in to let you know what to expect and what comes next.
Missing the tax extension deadline carries some potentially series consequences—and they all stem from penalties. We outlined them in greater detail in our last blog on the subject, but here’s the high-level view.
When you owe the IRS, they begin assigning penalties and interest from the day after you miss the deadline. And when you fail to file your taxes by the deadline—whether the original one or the tax extension deadline—you begin accruing penalties. Every penalty is based off your total tax bill. So when you don’t owe the IRS, the total sits at $0.
If you discover you owe the IRS, your Failure to File penalty will be calculated based on your tax bill.
Additionally, neglecting to file means you lose out on some of the benefits. For example, if you haven’t filed, you won’t get to access your tax refund. And specific to 2021, you may miss out on additional economic relief or advance Child Tax Credit payments.
If you haven’t filed by the tax extension deadline, what’s the next step you should take? Well, the first thing you should do involves rectifying the situation. But not everyone feels comfortable handling this next step on their own.
First thing’s first, you need to file your tax return. The sooner the better. Double-check your work and ensure that you’ve included all your income, credits, and deductions correctly. The last thing you want after a tax filing delay is to face down an IRS audit.
Absolutely! When you’re facing any kind of potential penalty with the IRS, we definitely recommend getting assistance. An expert tax team can not only help you file an error-free tax return, but we can help you maximize your tax refund and ensure you don’t leave any economic relief payments on the table.
Tax mistakes happen. That’s why we got into this business—to help! Over the years, our clients have demonstrated that a few small mistakes don’t have to define anyone. As long as you take the steps to correct your situation, you can get yourself out from under any tax issues. And you can get yourself back on the right track.
Are you ready to file your tax return? Get back on track with the IRS and take steps to pay your tax bill today. Send us a message via our free live chat to get started.
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