April 18, 2012 : Darla Tierney
What to Do If You Missed the Tax Deadline
Hello, it is April 18th. Which means the tax deadline was yesterday. At this point, the IRS will deny any requests for extensions — but don’t freak. You still have options.
You can still file. All hope is not lost. In fact, if you’re due a refund, there is no penalty for filing late (but keep in mind that there’s a 3-year window before you forfeit your refund, so be sure to file before April 15, 2015).
You’ll be subject to a late filing penalty: 5 percent of your unpaid balance per month, or part of a month, up to a maximum of 25 percent.
If you didn’t pay additional taxes owed by April 17, whether you filed an extension or not, a late payment penalty of one-half of one percent (0.5%) will also accrue each month or part of a month until the balance is paid in full.
Conclusion: if you owe, the sooner you file, the smaller your penalty. If you’re due a refund — well, what are you waiting for?
[Image: l’ethan via Flickr]