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Missed the IRS Tax Deadline? Here’s What Happens If You Forget to File or Pay

Author: Elite Consulting, P.C. | | Categories: AvoidIRSpenalties , Business Structure and Taxes , Cash Flow Analysis , Client-Focused Tax Services , Common Tax Mistakes , Federal Tax Changes , IRS Tax Tips , IRS Unpaid Taxes , SaveOnTaxes

Blog by Elite Consulting, P.C.

What Happens If You Forget to File or Pay Your Taxes on Time?

Tax time can be stressful. Sometimes, life gets busy and we forget things—even important things like filing our taxes or making payments. But what happens if you miss the IRS tax deadline or forget to pay what you owe? Don’t worry! You’re not alone, and there are ways to fix it. Let’s break it down step-by-step so it’s easy to understand.

When Are Taxes Due?

For most people in the U.S., the deadline to file your taxes is April 15. That means your tax return needs to be sent to the IRS by that date. If you live and work outside the U.S., you usually have until June 16 to file.

But what if you miss it?

 

What Happens If You Miss the Deadline?

1. You Might Have to Pay a Penalty

If you don’t file your taxes by the due date and you owe money, the IRS can charge you a penalty. This is called the “Failure to File Penalty.” It can grow the longer you wait. The IRS usually charges 5% of the tax you owe each month that your return is late. This can go up to 25% total. So filing late can cost you more money.

2. You May Owe Interest

Even if you file your taxes, if you don’t pay the full amount you owe, you might also have to pay interest. Interest is extra money added to what you owe. It starts from the day your taxes were due. The longer you wait to pay, the more interest you will pay.

 

What If You Can’t Pay What You Owe?

It’s okay! The IRS knows that sometimes people can’t pay everything at once. Here are a few options they offer:

1. Payment Plan

You can ask the IRS for a payment plan, also called an installment agreement. This means you can make smaller payments over time instead of paying all at once.

  • You can apply online at IRS.gov
  • Plans can be short-term (180 days or less) or long-term (more than 180 days)
  • You’ll still pay interest, but at least you’re avoiding bigger penalties

2. Offer in Compromise

If you truly can’t afford to pay everything you owe, you can apply for something called an Offer in Compromise. This lets you settle your tax debt for less than the full amount. But not everyone qualifies. You have to prove you can’t pay.

3. Temporarily Delay Collection

If you’re going through a tough time financially, the IRS may let you delay paying. This is called “Currently Not Collectible.” It doesn’t erase the debt, but it gives you time before they try to collect it.

 

What If You Are Getting a Refund?

If the IRS owes you money and you file late, you won’t get penalties. But you do need to file your return within three years to get your refund. If you wait too long, you could lose the money you’re owed!

 

How Can You Avoid Problems Next Time?

Here are some easy tips to stay on top of your taxes:

1. Set a Reminder

Mark your calendar for April 15 every year. You can also set a phone alert to remind you when tax season starts.

2. File Early

Don’t wait until the last minute. Filing early helps you avoid stress and gives you time to fix any problems.

3. Use a Tax Professional or Software

A tax expert can help you file the right way. Or you can use software that makes filing easy and fast. Some are even free if you meet certain income rules!

4. Ask for an Extension

If you need more time to file your taxes, you can ask for an extension. This gives you until October 15 to file your return. But remember: this does not give you more time to pay. If you owe money, you still need to pay by April 15, even if you file later.

 

What If You Already Missed the Deadline?

If you already missed the deadline, here’s what to do:

1. File As Soon As You Can

Even if you’re late, it’s better to file now than to wait longer. The penalties will stop growing once you file.

2. Pay What You Can

Try to pay as much as you can, even if it’s not the full amount. This helps lower the penalties and interest.

3. Talk to the IRS

The IRS is easier to work with than most people think. You can call them or visit IRS.gov to set up a plan.

 

Why It’s Important to Fix It

Ignoring taxes won’t make the problem go away. In fact, it can make things worse. If you keep ignoring the IRS:

  • They could take your paycheck (called wage garnishment)
  • They might put a lien on your house or car
  • You could lose your refund
  • Your credit could be hurt

But don’t be afraid. If you take action, things can get better fast.

 

Final Thoughts

Missing the tax deadline or forgetting to pay can be scary, but it’s not the end of the world. The most important thing is to act now. File your return, make a plan, and talk to the IRS if you need help. There are options to help you catch up, and the sooner you start, the less it will cost.

So remember:

  • April 15 is the deadline (June 16 if you’re abroad)
  • File even if you can’t pay
  • Pay what you can
  • Ask for help if you need it

Need help with your taxes or payment options? Reach out to a tax pro today. It’s never too late to get back on track!

 

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