For most taxpayers who filed for an IRS extension, the deadline came and went this week. If you didn’t file your tax return in time, you may be feeling scared right now. Don’t get scared. Take action! It is never a good idea to simply bury your head in the sand, if your tax issues get more difficult. You need to really examine why you are in the situation you are in and then you can make an action plan. I’ll help you out by asking you two questions:
Why did you file for an IRS extension?
If you filed the IRS extension simply because you knew you didn’t have time to do it correctly, then you filed for the right reason. If you filed an IRS extension because you knew you were going to owe, then you filed for the wrong reason.
An IRS extension is an IRS extension to file and not an IRS extension to pay. When you filed for an IRS extension, you should have sent a check for the amount you estimated you would owe. If that number was wrong, you would either have to pay the IRS more money or the IRS would owe you. If you didn’t make a payment before April 15th, you are going to owe penalties and interest now too.
Why did you miss the IRS extension deadline?
Did you simply just run out of time? That’s understandable. Some tax years are more complicated than others and life can get in the way of IRS paperwork sometimes. If you just need more time to file, just keep working on it. Yes, you may owe a Failure to File penalty now. However, if you get your tax return in and have it done right, you’re probably saving yourself from more painful headaches in the future.
If you missed the deadline because you just didn’t know how you would pay your debt, you have more work ahead of you. First of all, just get your return filed. The IRS is expecting a tax return from you now and, by not filing it, you are waving a giant red flag in their faces. If you can’t pay your whole tax debt, send what you can. Then, figure out how you are going to pay the rest.
There are a lot of tax programs out there for a lot of different situations. Start researching them. Better yet, consult a tax professional. My team is available to discuss your tax situation and help you figure out the best way to handle your missed IRS extension deadline.