Missed the Tax Deadline? Here’s What the IRS Says You Should Do Next!

As the tax season for the 2024/2025 fiscal year wraps up, many are glad to set aside IRS filings until the next cycle. Nevertheless, some people missed the April 15 deadline to submit their tax returns. If you’re among them, there’s no need for alarm. The IRS won’t be showing up at your doorstep immediately. They provide a detailed guide on what to do next if you’ve missed the deadline.

Benefits of Early Tax Filing

The tax season began in late January, giving taxpayers about two and a half months to file before the April 15 deadline. The IRS does offer the option to apply for an extension if complications arise, which is why they encourage starting the filing process early.

There are three methods to request an extension for filing taxes:

1. Submit your estimated tax due online and select the extension request option
2. Utilize IRS Free File to electronically request an extension
3. Send your request via mail using Form 4868

Additionally, US citizens residing abroad automatically receive a two-month extension. Some residents in areas hit by natural disasters have been granted extensions without needing to apply. Note that post-April 15, it is no longer possible to request an extension.

What if You Can’t Pay Your Taxes?

Many delay filing because they believe they must fully pay any owed taxes by April 15. However, the IRS offers several options for those unable to pay in full, including installment plans. It’s critical to contact the IRS promptly to discuss available options.

If you’re unable to pay the total amount due by the deadline, it’s advisable to pay as much as possible and then apply for an online payment plan. You can check the status of your application on the IRS website. Regardless of your ability to pay, ensure you file your taxes or request an extension before the deadline.

Consequences of Missing the Filing Deadline

If you missed the April 15 deadline without filing for an extension, it’s crucial to file as soon as possible. Taxpayers with a history of timely payments for the past three years may be eligible for penalty relief. Filing quickly can reduce penalties and interest accrued for late submissions.

If you fail to meet the filing deadline, the IRS will impose a “Failure to File” penalty, which is 5% of the unpaid taxes each month or part of a month that the return is late, up to a maximum of 25%. To minimize penalties, pay any due amounts promptly and plan to file earlier in the next fiscal year.