If you missed the deadline to file your 2022 tax return, you may wonder what will happen next. Is the IRS going to contact you? Will you have to pay a penalty?
Before you panic, know that the IRS will in most cases to work with taxpayers who have missed their filing deadline and owe money. Your best strategy is to act quickly and file as soon as possible, even if you owe money.
This post will discuss 2022’s remaining tax dates and explain what happens to late filers.
2022 Tax Deadline
The tax filing deadline for the 2022 tax year was April 18, 2023. This also represented the last day to submit extension requests. If you were unable to file or request an extension on time, then you are now considered a late filer by the IRS.
*Exceptions*
Taxpayers who work or live outside of America receive an automatic two-month grace period. Taxes day for these individuals is June 15, 2023.
You may also qualify for an automatic extension if you live in a state affected by natural disasters. In 2023, the federal government extended tax filing deadlines for residents of specific counties in 10 states. Find more information here.
Consequences of Filing Late
Unfortunately, filing your taxes late can be expensive. You can be hit with multiple penalties and fees:
- Failure to Pay Penalty
- Failure to File Penalty
- Interest.
The Failure to Pay Penalty applies to any taxes owed but not paid on time. You’ll be charged 0.5% of the unpaid tax amount per month, up to a maximum of 25%. Eventually, the IRS may try to collect what you owe by taking money from your bank account or garnishing your wages.
If you skip filing your taxes altogether, the Failure to File Penalty will apply. This penalty is 5% of the unpaid taxes for each month that you don’t submit a return. Again, it has a maximum threshold of 25%. If you take over 60 days to file your tax return, you’ll need to pay at least $435 or 100% of your bill, whichever is smaller.
On top of any penalty fees, interest accrues on past-due federal taxes.
*Exceptions*
You may be eligible for a penalty abatement if your failure to pay or file was due to reasonable cause and not willful neglect. You can be granted a full or partial waiver of the penalty fees you owe.
What If You Don’t Owe Anything?
If you don’t owe anything to the IRS, you are not subject to penalties for filing late. However, if you’re due a refund for 2022, you only have three years to claim it. You must file your return by April 18, 2026, or the IRS will keep your refund money.
What If You Owe Too Much to Pay Right Now?
Filing a tax return when you can’t afford to pay your taxes can seem daunting, but it’s the best way to minimize your bill. The longer you wait to file, the more fees and interest you’ll accrue.
If you cannot pay your entire tax bill immediately, see if you can set up a payment plan with the IRS instead. Standard IRS payment plans include:
- One-time payment.
- Short-term payments (180 days or less).
- Enter a long-term payment plan (180 days or more).
2023 Tax Deadlines
Here are the remaining tax deadlines in 2023:
- June 15th: Deadline for taxpayers living and/or working abroad and 2nd quarter estimated taxes.
- June 17th: Last day to file for 2019 tax refund for non-residence.
- September 15th: 3rd quarter estimated taxes due.
- October 17th: Final day to file a 2022 tax return (if you’ve requested an extension).
- Dec 31st: 401k contributions and second RMD deadlines.
Finish Your Taxes with Kondler & Associates, CPAs
Did you miss filing your taxes on April 18? Let the experienced team at Kondler & Associates, CPAs, help you complete your overdue taxes and navigate the consequences of filing late. We’ve built our reputation on more than 30 years of customized services that meet each client’s unique needs.
Give us a call today to get started.
