The April 15 Deadline Has Passed – Now What?
Tax season is incredibly stressful, and if you just missed the April 15 deadline to file your tax returns, you are likely feeling anxious. The good news is that you are not alone, and there are clear steps you can take to minimize penalties and get back on track. At Brightside Tax Relief, we specialize in helping individuals and businesses handle unfiled tax returns and negotiate with the IRS.
Why Missing the Tax Deadline is a Problem
When you miss the April 15 deadline, the IRS immediately begins assessing Failure to File penalties if you owe a balance. This penalty is steep—typically 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25%. Additionally, a Failure to Pay penalty (usually 0.5% per month) also accrues if you owe money.
If you have unfiled tax returns, the IRS can also take drastic measures, such as creating a Substitute for Return (SFR) on your behalf. An SFR is calculated using only the information reported by third parties (like W-2s and 1099s), without giving you credit for deductions and exemptions you might be entitled to, often resulting in an artificially inflated tax bill.
Steps to Address Unfiled Returns After April 15
1. File as Soon as Possible
The single most important step you can take is to file your unfiled tax returns immediately. Even if you cannot afford to pay the tax you owe in full, filing your return stops the Failure to File penalty from growing further. The Failure to Pay penalty is significantly lower than the Failure to File penalty.
2. Gather Your Documentation
If you avoided filing because you were missing documents, take the time now to gather your W-2s, 1099s, receipts, and other records. If you lost documents, you can request a Wage and Income Transcript from the IRS, which will show all the income information reported to the IRS under your Social Security Number.
3. Explore IRS Payment Options
If you file your return and discover you owe a substantial amount, do not panic. The IRS offers several payment options for taxpayers who cannot pay their balance in full right away:
- Installment Agreements: Set up a monthly payment plan to pay off your tax debt over time.
- Offer in Compromise (OIC): In some cases, you may qualify to settle your tax debt for less than the full amount owed.
- Currently Not Collectible (CNC) Status: If you are experiencing severe financial hardship, the IRS may temporarily pause collection efforts.
4. Address Older Unfiled Tax Returns
If this isn’t the first year you’ve missed the deadline, you may have multiple years of unfiled tax returns. The IRS generally requires you to file the last six years of returns to be considered in “good standing.” Failing to file older returns can lead to wage garnishments, bank levies, and tax liens.
How Brightside Tax Relief Can Help
Dealing with the IRS on your own, especially when dealing with unfiled returns and missed deadlines, can be overwhelming. The tax professionals at Brightside Tax Relief are experts at navigating the complexities of IRS debt and unfiled tax returns.
We can help you:
- Request missing transcripts and documents from the IRS.
- Accurately prepare and file your unfiled tax returns to minimize your tax liability.
- Negotiate penalty abatement to reduce the fines assessed against you.
- Set up an affordable payment plan or negotiate a settlement with the IRS.
Don’t let unfiled tax returns destroy your financial peace of mind. Take action today.
Contact Brightside Tax Relief Today
If you missed the April 15 tax deadline and need help with unfiled tax returns, reach out to us for a free consultation. Let us stand between you and the IRS.
Call us now at 914-214-9127 or visit brightsidetaxrelief.com to get started!
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