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If you missed the April 18 tax deadline, you can reduce penalties by filing your tax return promptly, the IRS says.
Even if it’s too late to request an extension, you can still reduce monthly late fees. Non-filing costs 5% of unpaid taxes per month and late payments incur 0.5%, both capped at 25%.
However, you may qualify for a one-time penalty relief if you have a history of on-time filings and payments, said Tommy Lucas, a certified financial planner and registered agent at Moisand Fitzgerald Tamayo in Orlando, Fla.
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To be eligible, you must have no late filings or penalties from the previous three tax years, and you must be current on all tax returns and balances or have an IRS arrangement to cover unpaid taxes.
There’s no penalty if you get a refund, said Sergio Garcia, a CFP and executive director of financial planning at BFS Advisory Group in Dallas. But the longer the filing takes, the longer you wait for your payment.
You can continue to submit your tax return through the IRS Free File Service if your 2021 adjusted gross income is $73,000 or less, which covers about 70% of taxpayers, or through October 20 using free fillable forms if your AGI exceeds $73,000 .
Most states also require an income tax return, but some places have a due date after the federal deadline. Visit your state’s tax website for information.
Although the federal tax deadline was April 18 for most Americans, some applicants automatically have more time, including certain disaster victims, those serving in combat zones, or U.S. citizens and resident aliens living abroad.
“In some cases, the renewal period can range from an automatic two-month renewal to an additional 180 days that must be filed,” said Jim Guarino, a Woburn, Massachusetts-based CFP and CPA at Baker Newman Noyes.
Even if you don’t have to submit it, it can still be beneficial to send a return, he said. This is the only way to ensure a refund or refundable tax credits such as
If you can’t pay your bill
If you can’t cover your tax bill, you may have options such as B. A long-term payment plan by the IRS known as an installment arrangement. But you must be current on all returns and owe no more than $50,000 including taxes, penalties and interest.
Other options may include a compromise offer for taxpayers with financial difficulties, allowing you to settle with the IRS for less than you owe, or “currently non-recoverable” status, where the agency temporarily stops attempting collection. However, you must meet certain criteria to qualify.
https://www.cnbc.com/2022/04/22/heres-what-to-do-if-you-missed-the-april-18-tax-filing-deadline.html Here’s what to do if you missed the April 18 tax return deadline