Avoid Costly Mistakes: What To Do If You Have To File Your Taxes Late

If you're like most people, you dread the thought of tax season. Taxes are something that you simply can't get away from. Even if you forget to file – which many people have done – you still need to catch up, as quickly as possible. When it comes to avoiding problems with the IRS, the best thing to do is file your taxes before the deadline. Unfortunately, emergencies can pop up that make it impossible to make a timely tax return filing. If you're in danger of missing a tax deadline, use the following tips to help avoid additional problems.

File a Request for Extension

If you're going to miss a tax deadline, don't just ignore the problem. Ignoring the deadline can lead to serious problems, such as the addition of late filing fines. As soon as you know that you're going to miss the filing deadline, contact the IRS and request an extension. The extension will give you up to six months to complete your paperwork and file your taxes. If you know that you're going to owe taxes, but you can't afford them right now, request a payment plan at the same time.

Be Ready for a Bigger Bill

If you need to file an extension for more time on your taxes, be ready to pay a bigger bill. While you won't be hit with the fines if you've filed an extension, you'll still owe interest on any tax bill you owe the IRS. One way to avoid the heftier tax bill is to pay off as much of the amount you owe as possible, prior to the end of your extension deadline. That way, the additional fees can be kept to a minimum.

Understand Extenuating Circumstances

If you're dealing with extenuating circumstances, you may have received an automatic extension. If that's the case, you'll want to avoid requesting an additional extension. Making an extension request when you already fall into an automatic extension category can cause problems and confusion for you. Some of the extenuating circumstances include being the victim of a natural disaster, or living and working outside of the United States. Being a member of the armed forces may also provide you with an automatic extension, especially if you were deployed for part of the tax year.

Keep Track of Your Deadlines

If you've been granted an extension, be sure to keep track of the new deadline. Missing an extension deadline can put you right back in the same position you were trying to avoid – owing stiff penalties and fines. One way to avoid problems is to mark the deadline on your calendar, and file as soon as possible.


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