If you filed for an extension on your 2017 taxes, October 15th, 2018 is the last day to file taxes for the 2017 year. To avoid penalties and accruing interest, jump on preparing that tax return as soon as possible. You can still e-file or mail in your tax return by yourself. In case you need assistance in filing your 2017 taxes correctly, here at Private Tax Solutions we have an entire team dedicated to helping you file your taxes.
What to do if you didn’t file taxes yet, nor file an extension
In case you were intending to file for an extension, but never got around to it, your tax return is considered late. If you owe taxes, for each month your return is late, the IRS adds 5% of your balance to your total debt. If you are expecting a tax return for 2017, you can still file your taxes and claim your return at no penalty. However, claim your return soon! You can only collect tax returns for up to three years in retrospect.
What happens if you miss the extension date (penalties and accruing interest)
With the IRS, a deadline is a deadline. The IRS will add penalties and interest rates to your IRS balance, even if you’re only a day late in filing. Keep the approaching date in mind as you prepare your taxes on time. If you have missed other years in the past, it’s not too late to file and pay off your back taxes.
What to do if you can’t pay/afford this year’s taxes
If you cannot afford to pay your taxes, the IRS offers several different payment options. If you leave your debt unpaid, the IRS will add .5% of your tax balance to your total IRS debt. If your debt is significant, the IRS may take serious actions to pay off your debt by levying your house or bank account or garnishing your wages. To prevent this, contact us today to discuss payment plan options that will work with you, your income, and your expenditures.
Compared to paying off a well-overdue tax debt, it doesn’t take a whole lot of time to prepare your taxes and file them on time. Plus, without having to pay late penalties and increased interest rates on IRS balances, it’s cheaper too. If you have questions on filing your tax return before October 15th, contact us at Private Tax Solutions today.