If you are reading this, I’ll take it that you survived yesterday’s tax deadline in one piece. I wish you an enjoyable ‘post’ tax season. Hopefully you’re relaxing, and focusing on more relaxing aspects of life.
Didn’t File Or Request An Extension?
Unfortunately, if you did not request an automatic extension of time to file with the IRS before the deadline, you missed the opportunity to get an additional six months to file your return. Don’t even bother trying to file one now.
But, it isn’t the end of the world. My advice is to get your taxes taken care of ASAP to minimize the assessment of fees and penalties.
If you get your return filed within the next couple of days, the penalties you’ll be assessed will be minor. The longer you wait, the more you will end up owing Uncle Sam.
There are two types of penalties that the IRS can assess, Failure to File (FTF), and Failure to Pay (FTP). Even if you can’t afford to pay the taxes you owe, you can avoid the FTF penalty. If you don’t file, nor pay, the IRS will hit you with both.
If you don’t have enough money in the bank to pay the taxes you owe, you might want to consider paying by credit card. The IRS does accept credit card payments, but you will have to pay the credit card processing service a nominal fee, as well as interest to your credit card company. Depending upon your credit card company, the interest you pay them could be less than the compounded daily interest and penalties you would pay the IRS. Plus, that might be a small price to pay for avoiding the stress and hassle of IRS collection actions.
Remember, you always have the option to hire a professional to help get your return filed, and setup a payment plan with the IRS. I especially recommend doing so if you owe a lot in back taxes, and you simply can’t afford to pay. The benefit of hiring a tax resolution professional is that they are knowledgeable of every option available, which can ease your financial strain. My advice is that you do your research on the professionals before hiring them.