First and foremost, do something. Do not keep procrastinating this. As Mr. Micawber advises in Dickens’ classic saga David Copperfield, “Never do tomorrow what you can do today. Procrastination is the thief of time.”
“Never do tomorrow what you can do today. Procrastination is the thief of time.” - from David Copperfield by Charles Dickens.
Now, first the bad. What if you they claim you owe…
A failure to file when you owe taxes can have very serious penalties. Failing to file a tax return at all comes with an automatic 5% penalty for each month you’re late. This penalty equals 5% of the unpaid total balance on your tax bill (with a maximum penalty of 25).
As this is a per month charge, you can see how it adds up quickly. Further, whereas the IRS won’t come hunting you right away people will have a tendency to forget out this debt and let it build up. So act quickly to get it taken care of.
You could also owe the IRS any interest that accrues on top of the unpaid taxes and penalties. The interest rate is currently 5% per year, compounded daily, (according to the IRS).
Now, the good. What if you are getting a refund?
If you are late with filing your tax return, you really have nothing to worry about. There will be no penalties assessed and you still have plenty of time to file your taxes. The IRS gives individuals three years to file and claim refunds so for anyone owed a refund they have until 2021. Is still advise you to act right away but there is still plenty of runway.
It is important to note, however, that for simple e-files returns will only be allowed through November 2018. So, stay focused and get it done! Great companies like e-file.com can help you zip through the process, painless, and usually free (or close too) (for more comprehensive and complex work, I’d recommend always using a licensed tax professional like #TaxDefenseNetwork).
At the end of the day, breathe easy and take action! You can still make it up and get the help you need.