Deadline to file your tax return has come and gone, but did you miss the tax deadline? Because of missing forms or other situations not everyone was able to file their taxes on time. Whether you owe taxes or are due a refund file quickly, the longer you wait the more you risk complicating your tax situation. You will always want to file your return before the IRS has to contact you regarding your tax return. The steps you will need to take depend on whether you are expecting a tax refund or you owe taxes.
If you are due a refund:
You will not get penalized if you are expecting a tax refund for not filing your return on time. You still have time to file your taxes to claim your refund until April 2021. The Internal Revenue Service will give you three full years to complete a return and claim your refund. E-filed returns for 2017 are accept through November 2018 after that you will have to submit a paper tax return. File soon because the IRS could file a substitute return on your behalf and not include your deductions and credits. If the substitute return shows you owe taxes you have 90 days to take action to not submit.
If you owe taxes:
If you owe taxes, you need to file your return right away as failure to file penalties are higher than failing to pay on time. You will pay a penalty for each month or part of a month that you are late. Tax penalties equal 5% of your unpaid balance and up to a maximum penalty of 25% of the unpaid balance. You can always file your tax return even if you cannot make a payment but pas as much as possible so you can minimize penalties and interest. If you are not able to pay amount immediately you can work out a payment plan with the IRS. The maximum time given for a short term plan is 120 days to repay and there is no fee to setup payment plan. You can also set up an installment agreement if you need more than 120 days to repay.