I Missed The July 2020 Tax Filing Deadline. What Should I Do?

The first thing you should do is prepare and file your 2019 return as soon as possible. The sooner you file it after the deadline, the fewer penalties you will be charged. You will be charged interest from July 15th until your debt is paid. If you owed additional tax along with the return, you should pay that if at all possible.

Is It Okay To File My Federal Taxes Late, As Long As I Am Owed A Refund?

Yes. If you file late, normally, you would be charged with a late filing penalty. However, if you are scheduled to get a refund, no penalties will be charged. The IRS will hold your refund until you actually file the tax. Remember that you only have 3 years to file that return in order to get your refund. If you wait longer than 3 years, your refund will be lost.

Is An Extension To File My Federal Taxes The Same As An Extension To Pay?

No, unfortunately, it is not. An extension to file is simply extra time to file your return. If you owed tax with that return, you should estimate how much you owe and pay at least some of the money on the filing deadline, which is July 15th this year.

What Penalties And Interests Will Be Imposed If I File My Taxes Late?

If you file your taxes late, you will be charged a late filing penalty and sometimes a non-filing penalty. This can eventually add up to about 25% of your tax. If you owe additional tax with your return, you’ll also be penalized for not paying on time and you will be charged interest starting on July 15th this year until your tax is paid in full.

What Penalties And Interest Will Be Incurred If I Fail To Pay My Taxes In Full Before The Due Date?

If you do not pay your taxes on time, you will be charged interest, which is changed quarterly by the IRS. Remember that the interest is compounded on a daily basis. Right now, the interest is around 4.5% (August 2020). You’ll also be charged penalties for non-payment and late payment.

What Is Penalty Relief Or Penalty Abatement?

When you file a tax return but you do not file or pay it on time, there are 3 components that determine the amount you owe. One is the tax on your return, the second is the interest the IRS charges when you don’t pay your tax on time, and third are the penalties the IRS imposes for non-filing, late filing, and late payment. Sometimes the IRS will agree to abate or forgive the penalties that are charged if they determine there was reasonable cause for the delay.

Who Might Qualify For Tax Penalty Relief?

The IRS will forgive penalties if there is determined to be reasonable cause. If the taxpayer can show that he or she had a valid reason for not being able to file or pay the taxes on time, they may be granted the penalty abatement relief. Generally, if you are asking for relief, and it is the first time you have ever been late in filing or paying, the IRS will usually forgive the penalties for that year.

I Am A Military member And Was Not Able To File My Taxes On Time. I Also Did Not File An Extension On Time. What Can I Do?

It depends on where the military member is actively serving. If he or she is serving at home or in a non-combat zone, there is no further relief. You will be charged the late penalties for not filing on time. However, if he or she is serving in a combat zone, then the IRS automatically extends their time for filing taxes and paying taxes. The time extended is equal to all of the period that he or she is in active duty in the combat zone plus 180 days.

How Will A Tax Attorney Help Me If I Missed The Filing Deadline For My 2020 Taxes Or If I Can’t Pay On Time?

A good tax attorney can help you by filing for penalty abatement to have the IRS forgive the penalties that will be charged. Furthermore, a good attorney can many times help you enter into a reasonable installment agreement that is lower than what the IRS would require you to pay per month.

Should I Contact The IRS Directly If I Missed The Filing Deadline and Try To Work Something Out Or Should I Hire An Attorney?

That is a personal decision that you have to make, depending on how much time you have and how comfortable you feel negotiating with the IRS. I can think of 3 reasons that an attorney would be more helpful than trying to do it yourself: 1) A good tax attorney has special access to the IRS, so they do not have to wait multiple hours on the phone to speak to an IRS representative. 2) An attorney can help you file for penalty abatement to lower the penalties that the IRS is charging and finally, 3) attorneys can usually negotiate a lower installment agreement or payment plan than the IRS would ask you to pay.

For more information on Missing The July 2020 Tax Filing Deadline, a free case evaluation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.

Office Location

11 McGee Street
Greenville, SC 29601

Phone: (864) 271-7940
Fax: (864) 370-3413
Toll Free: 1-800-216-1116