Missed Tax Filing Deadline?

Missed the 2022 Tax Filing Deadline of April 18, 2023...

...now what?

Can you file for an extension?

Sadly no...that deadline to extend is over.

BUT...you can reduce the impact of missing this deadline by NOT delaying further.

So let's dive into what happens now....

The IRS will hit you with 2 Penalties:

#1. Failure to File Penalty

How that is calculated:

• 5% of the UNpaid taxes for EACH month (or part of the month) that the tax return is late

• this penalty will NOT exceed 25% of your UNpaid taxes

• Thus...it maxes out after 5 months

So that's part of the penalty...and the reason you should file an extension...even if you don't have the money to pay!

the second penalty assessed...

#2. Failure to Pay Penalty

How that is calculated:

• 0.5% of the UNpaid taxes for each month (or part of the month) the tax remains UNpaid

• this penalty will not exceed 25% of unpaid taxes

So Good-ish news...

if you did NOT Pay OR File...the fees slightly offset

...instead of owing 5% & 0.5%...they cap it at 5%...so your failure to file drops to 4.5%

...while the failure to pay remains at 0.5%.

Last piece of the puzzle here...

the IRS penalties are no fun of course...but here is the crappy part...

...IRS adds interest to all of this

Interest on:

• your unpaid taxes

• your newly acquired penalties

The current IRS interest rate is: 7% ( for Q2 2023)

So if you missed the deadline...it's not the end of the world.

But waiting = paying IRS MORE MONEY!

Need my team to help you?

Schedule a 15-Minute call with me.

Best

Pat

Disclaimer: This is meant to be educational ONLY.  This is NOT advice for your specific situation.  Please consult a qualified tax professional before making changes to your tax situation.