Easy steps to take after the tax deadline
Some time ago, you might have thought to yourself that the tax deadline is still some ways away, so you put it off. However, now you have seen that the tax deadline has come and passed.Ideally, you should have already settled all your taxes way before the deadline. However, now that the tax deadline has passed, you need to do your best to get them sorted out as soon as possible. There may be some problems popping up that you would rather not face. But worry not. This article will talk about the easy steps you can take to get your taxes sorted out even after the deadline has passed.Nobody wants to get into problems with the IRS. Don't panic if you missed this year's filing deadline; instead, act quickly.Unless they live in Maine or Massachusetts, where citizens have until April 19 to file due to the Patriots' Day state holiday, the bulk of taxpayers have until April 18 to file their 2023 tax return. Taxpayers who seek an extension will have until Oct. 17 to complete their returns, though they should have estimated and paid whatever taxes they owe already."As with everything IRS, the money you owe them is very different from the money they owe you," explains Rob Cordasco, CPA, founder of accounting company Cordasco & Company.However, if you have an outstanding tax liability, you should weigh all of your options. The deadline to request an extension with the IRS was also April 18.Here's what you should do if you missed the tax deadline, whether you're due a refund or owe money.
What to Do After the Tax Deadline?
If the tax deadline has passed, there are still steps you can take to sort out your taxes. Here are some easy steps you can follow after the tax deadline:1. File For A Tax Extension
One of the most straightforward steps you can take after the tax deadline is to file an extension. Tax extensions give you six or more months to get your paperwork sorted out and filed correctly.To be able to do this, all you need to do is fill out Form 4868, which gives a basic overview of why you are filing for an extension.The IRS will then decide if they want any further information from you before they grant the request—they often process these requests fairly quickly, so try to file one immediately.2. Make Sure to Have All Your Paperwork Ready
Having all the things you need to file an extension at the ready means you would not waste any more time trying to get your taxes done.Checking if everything is ready will also make sure the papers you mail are complete and accurate.For example, while paystub generator is a valuable tool for entrepreneurs, they do not work well when you file for returns - so make sure you have the correct papers on hand.It would be counterproductive to waste more time if the tax deadline had already passed.If you don't pay your tax bill on time, you'll face two major fines and fees: the failure-to-file penalty and the failure-to-pay penalty. Both begin immediately on April 19, and they can quickly build up, greatly increasing your tax liability.- This is how they work:
- Failure to file: This penalty is worth 5% of the unpaid taxes, increasing by 5% each month up to a maximum of 25%. In other words, the penalty is capped at five months late. The minimum penalty for filing your tax return more than 60 days late is $435.
- Failure to pay: This fee is equal to 0.5 percent of your tax total for each month the tax is delinquent. If you do not pay your tax within 10 days of receiving notification from the IRS, the penalty will increase by 1% every month. The penalty will not exceed 25% of your unpaid taxes.