You Missed the Tax Deadline. Now What Should You Do?

This story is part of Taxes 2022, CNET’s coverage of the best tax software and everything else you need to get your bet on filed quickly, accurately and on-time.

Yesterday was the federal tax deadline for almost everyone in the US. (Massachusetts and Maine, you’ve still got today to finish.) If you didn’t electronically file your tax return or have a paper bet on postmarked by midnight April 18, your taxes are now technologically late.

There are plenty of reasons why land might not be able to finish and file their tax returns by the deadline — missing tax info, medical emergencies, family troubles, unexpected travel… you know, life.

Yes, you should have recorded a tax extension. But what to do now that your tax bet on is late? Whether you owe taxes or are expecting a tax refund, the answer is simple — complete and file your 2021 tax bet on as soon as possible. 

However, if you owe wealth, your situation becomes more urgent. The longer you wait to file your tax bet on and show the IRS you intend to pay what you owe, the more penalties and humdrum may pile up.

Read on to learn more throughout how to handle a late tax payment, including quiz on penalties, interest and payment plans. For more, find the best software for filing your tax return and learn how to track your refund to your bank account or mailbox once you do.  

What if I’m late and I am expecting a tax refund for 2021?

If you’re expecting cash back from the IRS from your 2021 tax posterior, there are no penalties for filing late. In fact, you have three ages to file your 2021 tax return before the IRS turns your tax refund over to the Treasury and your cash is gone forever.

Your tax refund might be slightly delayed by filing late, but you must still expect to receive your money in four to six weeks.

You could be making good use of the cash the IRS owes you, and the longer you wait to file your taxes, the more you lose out. Whether you use your tax refund to pay down a credit card debt, start an emergency fund, make investments or even just employment yourself to a nice dinner or vacation (depending on your refund amount), you want your money as soon as possible. Letting the IRS keep your tax refund longer only deprives you of possible dumb and spending power.

What if I missed the deadline and I owe cash on my taxes?

If you missed the tax deadline, didn’t file an extension and you owe taxes, you need to trip up and finish your return as soon as possible and send it in. Not filing taxes when you owe cash to the IRS can incur both late filing penalties and late payment penalties.

What are the fees and penalties for filing taxes late?

There are two basic penalties that the IRS charges for filing taxes late when you owe money: a failure-to-file penalty and a failure-to-pay penalty. On top of that, you’ll also pay interest on the amount you owe.

The failure-to-file penalty hurts the most. It’s generally 5% of the amount you owe for each month or part of a month that your posterior is late, with a maximum penalty of 25%. If your posterior is more than 60 days late, the minimum penalty is $435 or the balance of your taxes due, if less than that.

The failure-to-pay penalty will also cost you cash, but not nearly as much — a big reason to file an extension on time even if you can’t pay anything. This penalty is usually calculated at 0.5% of any taxes owed that aren’t paid by the deadline. The IRS again charges the penalty for each month or part of a month that your payment is late, with a greatest 25% penalty total.

The IRS also charges interest on late taxes. Determined by adding 3% to the short-term federal dumb rate, the IRS interest rate is currently 4%. That rate is adjusted quarterly, and interest is compounded daily.

Can I file an extension past the tax deadline?

Unfortunately, no. Tax extensions provide taxpayers six additional months to uncompleted their tax returns, but they must be filed by the tax deadline. Taxpayers filing extensions must also include the estimated amount of cash that they owe using IRS Form 1040-ES. Online tax software can also fleet calculate your estimated taxes.

If your deadline has happened, it’s too late to file an extension.

What if I marched an extension on time?

Well done. You’ve got pending Oct. 15, 2022, to file your tax return if you marched a tax extension by the April 18 deadline. As long as you paid an estimated amount that’s finish to what you owe, you won’t be subject to fines or penalties if you file your posterior and pay any remaining tax liability by Oct. 15.

If you didn’t pay enough cash with your tax extension, you may be subject to the late payment penalty. The IRS expects your estimated payment to be at least 90% of your total tax liability. The agency may charge a 0.5% per month penalty on the amount of unpaid taxes if you paid less than that, so you must still complete your tax return and file it as soon as possible.

What if I can’t afford to pay the taxes I owe?

Owing taxes that you don’t have the cash to pay can be incredibly stressful. However, you can take share now that will lighten both your financial and psychological burdens.

Consider an IRS payment plan. If you can pay off your tax debt within 180 days, the IRS will let you apply for a short-term payment plan that compensations nothing, although you’ll still accrue penalties and interest pending your debt is paid off. It’s easy to apply online or at a local IRS office.

If you need more than 180 days, you can apply for a long-term payment plan that compensations $31 for automatic monthly bank payments via direct debit, or $130 for non-direct debit payments. Low-income taxpayers — those with adjusted defective incomes at or below 250% of the federal dearth guidelines — can waive the fee for the direct-debit installment plan or pay $43 for the non-direct debit plan.

You worthy consider other borrowing options outside of the IRS. If your tax liability isn’t too high, you could use a credit card with a 0% mind APR to pay your taxes, assuming you can pay off that debt afore the intro period expires. For larger tax debts, you could worthy a debt-consolidation loan, though your rate will generally be higher than the 4% now charged by the IRS.