The standard filing deadline for your 2018 taxes was on Monday April, 15th and many people were not prepared to submit their taxes yet. Life gets in the way sometimes and that’s understandable, however, you shouldn’t put off filing your taxes for too long or you may regret it. If you’re one of those people who hasn’t filed your taxes yet, you can file for an extension which will give you an extra 6 months to get all of your documents in order. You can face severe penalties for not filing your taxes so if you know that you’re going to miss the deadline, take the step to give yourself more time.
What Happens If You Don’t Pay?
If you file your taxes and do not pay them, the IRS will charge you with a failure-to-pay penalty. That means that the IRS will compound 0.5% interest on your unpaid taxes each month that you don’t pay. The compounding interest fee can even get as high as 25% so if you’re able to file your taxes on time make sure you pay them also. There is also a separate interest rate added to your unpaid tax amount which is 3%, if you’re receiving both of these fees on your unpaid taxes, the total amount cannot exceed 5% monthly.
If you forget to file your taxes completely, you will be charged with a 5% failure-to-pay penalty which will be charged each month your tax return is late. The amount is calculated using your unpaid tax amount, the penalty is charged immediately after the tax deadline. If you file your taxes 60 days late, you’ll be charged 100% of the taxes you owe or $135 whichever value is less.
How To File For An Extension
If you didn’t file your taxes by the deadline but want to avoid those extra fees, you can file for an extension which will give you more time to file and pay your unpaid taxes. To file an extension, all you have to do is visit the IRS.gov website and fill out the tax extension form. On the page, you’ll be prompted to submit a 4868 which is the standard tax extension filing.
If you don’t feel comfortable filing it yourself, you can always have a tax accountant apply for the extension on your behalf. Along with the extension filing, you’ll need to submit a tax liability and expense form for all of your transactions in 2018. You can pay online or over the phone and in some instances, checks can be mailed for payment of any fees you owe.
Submit Your Taxes On Time
As you can see, it’s best to simply file your taxes on time so that you can avoid all of the hassle involved with late tax filing or extension paperwork. There are a lot of automated tax services online which help you keep track of your monthly and yearly expenses so you don’t have to deal with tax extension filing.