What You Need to Know About Filing Taxes Late

Sometimes, those tax deadlines just have a way of sneaking up on you. When that happens, you may have no choice but to file your taxes late. While this is something you should try to avoid at all costs, it’s not the end of the world if you do file late. The most important thing is simply that you do file. However, when filing late, there are a few things you should be aware of.   

You Might Miss Out

Unfortunately, filing taxes late does sometimes have consequences, and one of those consequences is that you might miss out on refunds and tax credits.

If you’re due a withholding refund or a refund for estimated taxes paid, you are required to claim it within three years of the return due date. Once that time elapses, that refund or credit is gone, never to be seen again!

You Should File Even if You Can’t Pay

Sometimes, people file their taxes late on purpose. The most common reason for this is because they know they’ll owe money, and they can’t afford to pay it.

If you find yourself in this situation, go ahead and file. That way, you won’t owe taxes on top of a late filing and/or failure to file penalty.

Often, you can work out a payment plan or pursue other options with the IRS to pay your taxes.

Your Taxes Might Still Get Filed

If you make late filing or failing to file a habit, the IRS might just take matters into their own hands. In some cases, IRS employees will prepare returns for you, and these returns often don’t include deductions and credits which could help you to owe less. What’s more is you’ll typically have to pay penalties and interest as well.

As you can see, filing on time is always in your best interest. If you’re worried about meeting the deadline or have other questions related to filing, be sure to seek help from a qualified tax professional.