What happens if you don't submit a return and payment of taxes on time?

You will likely be assessed a financial penalty, even if it is just an additional interest charge, if you do not submit a statement and payment on time.

The late filing penalty for a 1,040 return is 5% of the tax due per month beginning in 2020, up to a limit of 25% overall, with additional fees accruing after 60 days.16 The IRS says you must file your statement as soon as possible. possible if you miss a deadline. If you owe taxes, pay them as soon as possible.

On October 19, 2020, the IRS announced extensions to the tax deadline for individuals and businesses affected by the California wildfires and Hurricane Delta.

Those affected by wildfires in California and who had a valid extension to file their 2019 tax returns until October 15 now have until January 15, 2021 to file their tax returns and pay taxes.

Those affected by the Hurricane Delta who had extensions to file until October 15, were granted until February 16, 2021 to file their tax returns and make payments.18 This exemption applies to areas that FEMA has designated as in need of assistance.

How to file electronically

You may want to email your late return if you haven't missed this deadline either. Many taxpayers can send IRS Free File emails, but only if their AGIs were less than $ 72,000 in 2020.

Some other rules, imposed by individual software vendors participating in the Free File Alliance, may apply.14 The IRS will accept and - Returns filed through November. It will announce the exact deadline in November sometime in October 2021.19

What if you can't pay your taxes?

Anyway, file your return and immediately request a payment plan if you cannot pay the tax due immediately. The IRS generally allows you to pay over time, as long as you take steps to do so.

Go to IRS Direct Payment and have the payment debited directly from your bank account if you owe money and you don't want to send a check to the IRS by mail, risking the additional time this may involve.

We hope you enjoy watching this video about Penalties for Filing or Playing Taxes

Source: Stephen Lee CPA

 

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