Are You Filing Taxes Late? Follow These Steps for An Extension…

April 15, 2013 : Kevin Cobb – Past Contributor

Editor’s Note: When you miss a deadline, you may think you’ve missed an opportunity to file entirely. This is not the case. Read on to figure out what to do after a missed a deadline and are filing taxes late. 

Say it’s Tax Day… What happens if you miss the tax filing deadline, you fail to file an extension and today passes you right by like any other Monday?

You can still file. All hope is not lost. In fact, if you’re due for a refund, there is no penalty for filing late.

Late Filing Penalty

If you owe taxes, you’ll be subject to a late filing penalty. This is 5% of your unpaid balance per month, or part of a month, up to a maximum of 25%. Also, whether you filed an extension or not, a late payment penalty of 0.5% will also accrue each month or part of a month until the balance is paid in full.  The IRS also charges interest on unpaid tax from the due date of the return until the date of payment, even if you were granted an extension of time to file the return.

How to Submit a Tax Filing Extension

While it’s a good practice to file your tax return as early as possible, if you can’t complete the return on time, you have the option to file an extension. To do this, you or your chosen tax preparer to file (Form 4868).

Filing an extension will give you another six months of breathing room. But, there are a few rules you need to follow.

  1. If you owe the IRS, you need to make an estimated payment in order to avoid the failure-to-file penalty.
  2. Most states require you to file a state extension in addition to a federal extension. Natural disasters also have an impact on tax filing deadlines, for example. (This IRS resource has a full list of natural-disaster-stricken states and their respective filing procedures.) Make sure to check with your state government for specifics.

If you owe, the sooner you file, the smaller your late filing penalty will be. If you’re due a tax refund — well, what are you waiting for? Get ’em done already and get that refund in your hands!

We hope this post gave you good information about what to do if you are filing taxes late. View more tax tips fro H&R Block now!

Related Topics

Related Resources

Six Reasons You Might Have Gotten a Notice Instead of Your Refund

Didn't get your expected tax refund? Learn about six possible reasons for this unexpected change from the tax experts at H&R Block.

What You Need to Know About an IRS Statutory Notice of Deficiency

The Statutory Notice of Deficiency is part of a series of notices sent by the IRS to propose additional tax, penalties and interest. Learn more from the tax experts at H&R Block.

IRS Notice CP79 – We Denied One or More Credits Claimed on Your Tax Return

The IRS has disallowed one or more of the credits claimed on your tax return. Learn about your options to address IRS notice CP79 from the experts at H&R Block.

IRS Letter 2975 – Intent to Terminate Installment Agreement

The IRS intends to terminate your installment agreement. Learn more about IRs letter 2975 and how to address it with help from the tax experts at H&R Block.

Kevin Cobb – Past Contributor

Kevin was a Senior Marketing Manager, Social Media for H&R Block. Prior lives include managing social strategy and channels for Hallmark Cards and EMBARQ.