Monday, April 15th was the 2019 tax deadline for most Americans. If you owe money to the government, that was your last day to cut a check to the IRS. This day is full of stress for a lot of people, especially procrastinators. Yet, the IRS shared on Friday the previous week that 50 million Americans still hadn’t filed.
So, if you’re one of the many Americans who miss the tax deadline, you don’t have to panic! The IRS provides options for you to look at. Here are several things you can do:
1) File an Extension to Push Tax Deadline
If you’re going to miss the tax deadline, you can simply file an extension. That will give you an extra six months to get your money in. Therefore, needing to file an extension isn’t always the problem of the filer. There are a variety of circumstances that lead people to miss the tax deadline. You should file the 4868 form for the extension.
“There are a variety of reasons people might need to file an extension, whether they don’t have all their sources of income and expenses identified or they need assistance,” Tim Speiss, partner at EisnerAmper Wealth Planning LLC.
“To have a valid extension generally—you need to pay in 90 percent of the tax due at the time of the filing … If you can’t do that, pay in as much as you possibly can to avoid further potential late-filing and interest charges,” Speiss said.
It’s not without its problems. If you file late and owe money, you will get extra time, but a late fee might be added. The fee is usually 5% of the amount of unpaid taxes you owe. That’s not overall, but 5% for every month you’re late.
Don’t Just Sit Around and Wait
You might have some good reasons for being late. The IRS might understand! For example, if you have a hardship, they might be understanding of what you’re going through. But, you can’t just sit on your hands and wait! Don’t waste time by waiting to contact the IRS with your problem.
“If a person is late with filing and late paying taxes, if they’re diligent and proactive with the tax authorities, that’s the best way to position yourself for best possible outcome,” Speiss said.
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So, don’t sit on your hands and wait for something to happen. Don’t ignore the problem. Still, the faster you address it, the easier it will be for you. The tax deadline has passed, but you don’t need to panic. Hopefully, the extension and become proactive and you should be fine.
