April 17 has come and gone, and you haven’t filed your tax return. What should you do? As a debt attorney will tell you, ignoring the problem won’t make it go away. Here are things you should know and what to do if you are late in filing your taxes.

Debt Attorney on What to Do If You Are Late Filing Your Taxes

Penalties for Late Tax Filing

The IRS can charge you for failing to file and failing to pay. For failing to file by Tax Day, which was April 17, 2018, the agency can charge up to 5% per month if you have unpaid taxes. If you file the return more than 60 days after the due date or extension date, the charge is a minimum of $205, or 100% of your unpaid tax if you owe less than that.

If you do not owe any money or if you are due a refund, there is no late filing penalty. However, failing to file delays your refund, and if you don’t file, you risk losing it.

Late Filing Options

Requesting an extension is a smart move. Debt attorneys know that the cost of failing to file is higher than the cost of failing to pay. Fill out Form 4868 for the automatic extension. If you owe taxes and can’t afford to pay, the IRS offers short term payment plans for 120 days and under. For a longer term payment plan, you can pay a $31 fee to apply online, or pay $107 if you apply by phone, in person, or by mail.  

If you owe back taxes and other debts that are overwhelming you, a Chapter 13 bankruptcy may be the best option for long-term relief. Before you make an agreement with the IRS, see a debt attorney to explore all of your options.

If you are late filing your taxes, struggling to make back payments, or facing tax liens, seek counsel from Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu, HI. Since 1996, he has been dedicated to helping individuals and business owners resolve their tax matters and achieve debt relief. To make an appointment to discuss your financial situation, call his office at (808) 524-4529. Visit him online for more information on options including Chapter 13 bankruptcy.