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If you missed the The tax deadline is April 15fines and interest have started to pile up – but there are still steps you can take to limit the impact.
Experts say taxpayers should apply quickly, even if they can’t pay their full debt, and pay as much as they can to avoid steep penalties. Those who still owe money can apply for a payment plan to manage the outstanding balance.
The IRS says that most applicants receive immediate approval or denial when they apply for an online payment plan.
TAX FORGIVENESS FILES NOTE: PAYMENTS ARE DUE TO THE IRS BY APRIL 15.
Contacting a tax professional early can help reduce the cost of taxes owed. (Stock)
“You can still file your return and at least eliminate the failure to file penalty, which can be up to 25% of any tax owed, plus interest,” said Mark Steber, chief tax officer at Jackson Hewitt Tax Services.
I The IRS can impose multiple penalties, including failure to file, failure to pay and underpayment penalties, which are assessed separately and can accrue interest daily, Steber said.
He added that consulting with a tax professional early on can help taxpayers exercise their options and potentially reduce costs.
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The IRS still requires payment by April 15, regardless of the extension. (Kayla Bartkowski/Getty Images)
“In most cases, the total cost – incl taxes“penalties, interest and service fees – it ends up being higher if you seek help early,” says Steber.
“The worst thing you can do is ignore the deadline,” he added. “Many people think they will deal with it later, but that can lead to increased fines and unnecessary financial risk.”
A SIMPLE TAX PRACTICE THAT CAN SAVE YOU THOUSANDS IN YOUR LIFE
Tax experts say the worst thing you can do is ignore the April 15 deadline and not pay immediately, because the costs can add up quickly. (Getty Images)
Filing as soon as possible and exploring IRS payment options can help taxpayers regain control of their situation and reduce additional costs.
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Steber said taxpayers should look at filing as part of a long-term financial strategy, not just a once-a-year obligation.
“Your income tax is one of your biggest expenses of the year,” he said. “Taking it right can pay dividends in the long run.”
