People can be forgetful sometimes, especially when they are busy juggling many tasks at once. For a business owner, deadlines can be a struggle too. No matter how organized you think you are, there will be days when you will simply forget. That is normal. Accept it when it happens and see what you can do to fix it. If it is the tax deadline that you missed, this article will guide you.
Here are some answers to your frequently asked questions regarding missed tax deadlines:
Late Income Tax: What You Should Do Next
If you fail to submit your papers on time, do not panic. Simply fill out your W-2 or other forms you were unable to submit like how you usually would. However, expect that the amount you need to pay would not be the same as last time since there is a penalty fee involved.
While filling out the form, make sure that all your documents are complete. Note that the requirements vary depending on your category. For example, self-employed and business owners might need to submit their:
- Business expense records
- Quarterly estimated tax payment receipts
- Mileage records
- Home office expenses
Check the list of your complete requirements to ensure that you do not miss anything.
Late State Return: What You Should Do Next
Like the income tax, all you need to do is fill out the state return form as is. You should also expect to pay a late fine when submitting the form.
IRS Confirmation of Receipt
You will know that the IRS received your late e-forms through an email. Expect to receive a message 48 hours after you submit your forms online. The email would tell you whether they will accept your late submission or reject it. Typically, the system will accept your form and only reject it if there are parts that you missed or if you need to make any corrections.
If you did get the rejection notification, repeat the process but make sure that you input complete and accurate information. Resubmit your form and wait for another email.
If you received a rejection email, the IRS usually gives you five days to make necessary corrections and resubmit your forms.
Answers to Other FAQs About Filing Taxes
- On Not Filing for an Extension:
A person can submit a request for an extension if they know that they would not be able to submit their forms on time.
If you failed to submit this request form before the deadline, expect to pay up a fee for late filing. That usually amounts to five percent of the tax you owed every month and could go as high as 25 percent.
You also need to pay interest for the total amount of your late payment. The interest rate varies. It could go from one-half percent per month up to 25 percent of your entire unpaid balance.
If you are aware that you cannot submit your paperwork on time, it would be better to file for an extension to avoid receiving these penalties.
- On Paying Late Payments:
If you are wondering how you can pay up your dues, you have many options. You can pay via cash to IRS offices, pay via credit card, debit card, or have it withdrawn directly from your account.
Should you need more time to pay up your dues, the IRS can give you a grace period. The relief days would depend on certain income, but it could go as long as six months.
If you miss out on a deadline, just proceed and file your form like usual. It is better to submit late than not to submit at all. If you do not file your taxes on purpose, the IRS will continue fining and charging you with growing interest. The best thing to do is face your shortcomings as soon as you recognize them and pay accordingly. The IRS offers payment terms should you need financial assistance.
If your tax penalties are too much for you to handle, contact a tax resolution specialist. They are the best person to offer you tax relief solutions. At Axiom Tax Resolution Group, we know the IRS rules, understand their tactics, and speak their language. We can help negotiate a fair payment plan or help you take advantage of an appropriate tax relief program in Birmingham, AL. Contact us today!