What Happens If You Don’t File Your Tax Return On Time?

It’s not uncommon for people to experience delays when filing their tax returns. Are you running late and fretting about the consequences? There are penalties for late filing and late payment such as interest. Don’t worry though. It’s not the end of the world to file your taxes late. A tax lawyer can help you deal with this situation.

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What Happens If You Don’t File Your Tax Return On Time?

It’s not uncommon for people to experience delays when filing their tax returns. Are you running late and fretting about the consequences? There are penalties for late filing and late payment such as interest.  Don’t worry though. It’s not the end of the world to file your taxes late. A tax lawyer can help you deal with this situation.

The IRS penalizes taxpayers for late filing and late payment.  On top of these two fines, the IRS also charges interest for taxes that have not been paid.  If it is painful for you to part with good money because of late payments, get your act together and meet the IRS deadlines. If you are already late and there is nothing to be done about that, what you can do is look for a competent tax lawyer.

A tax lawyer can help you argue “reasonable cause” for delay. He can also advise you on easy payment methods, which the IRS will be amenable to for as long as you can show proof of financial difficulty.  There is a ton of paperwork involved so having a professional at your side is best. Just refrain from excuses like “my dog ate it.”  We’ve tried it, it doesn’t work.

Late Filing Penalty

If you fail to file your tax return by the due date, expect to be fined 5% of the net amount of tax due for every month that the tax return is late. It is calculated from the deadline to the time that the return is actually filed.  The maximum penalty is 25% of your tax bill, so you cannot be fined more than that.

A good option for those who are running late is the submission of Form 4868, which is the application for extension. This option is for those who need more time to prepare their federal tax return. It is important to remember that Form 4868 does not extend the time to pay.

Late Payment Penalty

If you fail to pay your taxes by the due date, you will be fined 0.5% of the portion of your tax bill that is unpaid. This is a monthly fine so your penalty increases every month that you don’t settle your tax bill.

The services of a good tax lawyer come in handy at this time. There are instances when the IRS waives or abates penalty if there is reasonable cause for the delay.  You may also submit an offer in compromise. The IRS won’t insist on collecting taxes from you if doing so will create financial hardship, i.e., put you on the streets begging for food.

Interest

In addition to the penalty, you will also pay interest for each day that the payment is late. Interest rates change because they are set by the IRS quarterly.  According to the IRS website, the interest rate for September 2013 is 3% per year. It is calculated based on the amount that remains unpaid.

One important thing about taxes is that even if you have difficulty paying them, you should still file your tax return on time. A good tax attorney can help you explore payment options and even help you request abatement  The IRS will work with you and won’t bleed you dry. But you should file your tax return on time.

Question:

Do I always need legal representation when dealing with the IRS?

Answer:

No, you may request abatement and make offers in compromise on your own. A tax lawyer has the experience and the expertise, so their professional services improve your chances of success.

Comment:

The article should have also included what constitutes “reasonable cause.”  As far as I know, death or grave illness by the taxpayer or a close kin is an acceptable reason.  Are there others valid reasons that the IRS accepts?

If an IRS employee or a tax practitioner gives you wrong information, this situation is also considered by the IRS as reasonable cause.

FEDERAL TAX RESOLUTION - IRS TESTIMONIALS

This page covers some of the Federal Tax Resolution tax services testinmonials.

http://www.federaltaxresolution.com

FEDERAL TAX RESOLUTION - Tax Problems - IRS Professions

Federal Tax Resolution - Tax problems result from non-filing of tax returns or not being able to pay the total obligation to the IRS.

http://www.federaltaxresolution.com/

FEDERAL TAX RESOLUTION - IRS Tax Help - IRS Professions

Federal Tax Resolution has always helped lead the way in regards to Federal Tax Resoluton help. Federal Tax Resolution has helped thousands who needed IRS help, but could not afford an entire fee upfront.

http://www.federaltaxresolution.com/

IRS TESTIMONIALS

TESTIMONIALS

I NEVER IMAGINED THAT I WOULD NOT HAVE TO PAY ANYTHING.
L. E. Red Wing, Minnesota

HAVING A LARGE TAX DEBT WAS BAD ENOUGH. THE TAX LIEN MADE IT IMPOSSIBLE TO GET ANY EQUITY IN OUR HOME. YOU NOT ONLY HELPED US GET EQUITY TO PAY THE IRS OFF, BUT WERE ABLE TO GET BACK NEARLY $4000 IN PENALTIES. THE STRESS YOU SAVED ME WIFE AND I WAS HUGE. THANK YOU.
KEN L. San Antonio, Texas

I STILL CAN HARDLY BELIEVE THAT I OWED $2,436,133 AND THAT YOU GOT THEM TO SETTLE FOR $3009 IN LESS THAN ONE YEAR. THANK YOU AND IF I CAN RECOMMEND ANY YOU TO YOU, I WOULD BE HAPPY TO.
L.S. Sacramento, California

WHEN I FIRST CALLED YOU, I OWED THE IRS OVER $80,000. THEY WERE ABOUT TO GARNISH MY PAYCHECK, AND MY GIRLFRIEND WAS ABOUT TO LEAVE ME, DUE TO THE STRESS. MY MARRIAGE PLANS WERE ON HOLD. YOU REFILED MY TAXES, LOWERED WHAT I OWED BY OVER $62,000 AND SET ME UP ON PAYMENTS THAT I CAN HANDLE. YOU SAVED MY LOVE LIFE.
H. G. Phoenix, Arizona

MY FAMILY RUN CONSTUCTION BUSINESS WAS GREAT UNTIL WE FOUND OURSELVES IN TAX TROUBLE. THE IRS WAS GARNISHING SUB-CONTRACTORS WE WORKED WITH, AND THEN THE BANK WAS EMPTIED. WE DIDN’T KNOW WHAT TO DO. YOU GAVE US BREATHING ROOM WITH THE IRS, THEN RE-DID TAX RETURNS THAT THE IRS HAD DONE FOR US. YOU SAVED US OVER $12,000, AND SET US UP ON A LIVABLE PAYMENT PLAN ON OUR REMAINING BALANCE. WE WILL RECOMMEND YOU TO ANYONE WITH A TAX PROBLEM. THANKS.
Ken and Grace S. Austin, Texas

OWING PAYROLL TAXES OF OVER $232,000 DURING A CONSTRUCTION BUST, DUE TO THE ECONOMY FELT LIKE THE END OF THE WORLD. AFTER WORKING ON MY CASE FOR WELL OVER A YEAR AND A HALF, I CAN SEE THE LIGHT AT THE END OF THE TUNNEL. THE PLAN I HAVE WILL TAKE SEVERAL YEARS TO COMPLETE, BUT WILL SAVE MY BUSINESS AND MY FINANCIAL LIFE.
BILL T. Charlotte, North Carolina

Tax Problems -

Multiple tax problems need fixing. They all start from either non-filing of tax returns, or filing and having a debt, or incorrect assessment. Tax problems need to be analyzed to be fixed. Federal Tax Resolution has Tax Professionals who will determine your tax problem, then guide you through the process of finding a solution, so you may experience tax relief. Some of the most common tax problems are listed below. Click on the link for more information.
The following list is not a complete list, and Federal Tax Resolution works on a multitude of tax problems that are not listed here. These are the most common. If you don’t see your particular tax problem listed, call us for a free consultation, to determine if your particular problem is one we have expertise in.