You missed the tax filing deadline… now what? Don’t panic, but don’t play, either!
Let me keep it 100 with you—the IRS don’t forget, don’t forgive, and definitely don’t fumble when it comes to late taxes. If you missed the deadline to file your tax return, your stress might be building up like them late fees. But before you start ignoring those IRS letters like you do telemarketers, slow down and read this. I’m about to break down exactly what happens when you miss the deadline, how much it’s really gonna cost you, and what you can do —without getting scammed.
Missing the Deadline Ain’t Free
Let’s start with what you’re probably wondering: What’s the penalty?
If you owe money and didn’t file, brace yourself—the penalty for late filing is 5 percent per month of the unpaid taxes. That can stack up to 25 percent of what you owe. If you’re more than 60 days late, there’s a minimum hit of $510. That’s before they tack on the late payment penalty, which is 0.5 percent per month.
Put it like this: You might’ve owed $1,000 in taxes… but by dragging your feet, now the IRS wants $1,300+ —and that’s before they start adding interest, which is currently 7 percent annually and compounding daily.
I’m not telling you this to scare you. I’m telling you this so you stop playing yourself and take action—now.
Good News: If You’re Due a Refund, You’re Safe (Kinda)
Now, if you were supposed to get a refund, the IRS doesn’t penalize you for filing late. But here’s the kicker—you only have 3 years to claim that refund. After that, they keep the check. So don’t think you can chill forever. Uncle Sam ain’t in the business of handing out refunds on demand.
Disasters and Extensions
If you live in an area hit by a federally declared disaster, the IRS might give you an automatic filing extension. Check IRS.gov for those updates—don’t just assume you qualify. Assumption will have you in a penalty pile-up real quick.
Also, don’t confuse a payment extension with a filing extension. Just because you bought yourself more time to pay doesn’t mean you get more time to file.
Can’t Pay? Don’t Duck — Negotiate
If money’s tight and you can’t pay your full bill, the worst thing you can do is go ghost. Instead, reach out to the IRS and apply for an installment agreement. You can do this online at IRS.gov or call them at 800-829-1040. Be warned: hold times can be disrespectfully long, so pack your patience.
As a tax pro, I’ve set up countless installment payment plans for folks who couldn’t pay their full balance. Trust me—it’s better to get on a plan and stay in good standing than to dodge the IRS and end up with levies, garnishments, or frozen bank accounts.
Here’s what you need to know:
- Payment plans don’t stop the interest, but they do stop the drama.
- You’ll stay in good standing while you pay it off.
- You’ll avoid wage garnishment, liens, and levies.
Desperate? Scammers Are Waiting
Now let’s get into the shady side of this—the scam artists.
If you’re drowning in tax debt, you’re a prime target. Scammers will slide into your DMs (or mailboxes) promising to wipe your IRS debt clean with some “government program” you’ve never heard of. They’ll throw out fancy terms like “Offer in Compromise” and talk smooth like late-night infomercials.
Here’s the truth:
- Most of them are hustlers.
- They charge high fees and leave you worse off.
- If you do qualify for an IRS Offer in Compromise, you can apply yourself or use a legit tax pro—not some random voice on the radio.
Want to see if you qualify for real? Use the IRS Offer in Compromise Pre-Qualifier Tool on their site. If you don’t pass that tool, don’t let nobody sell you some dreams.
Need Real Help? There Are Options
Low on cash but need legit help? Tap into Low Income Taxpayer Clinics (LITCs). These organizations help folks for free or low cost—and they know the IRS game. In 2023, they helped eliminate or reduce $41 million in IRS debt. That’s impact.
You can find them at taxpayeradvocate.irs.gov.
Trying to Get Back Right? Here’s What to Do:
- File Your Return ASAP—Even if you can’t pay in full, just file it. That reduces the biggest penalty.
- Pay What You Can Immediately—Every dollar stops interest from stacking.
- Contact the IRS— Get ahead of it before they come looking for you.
- Document Everything—If you talk to an agent or try to file and it doesn’t go through, keep the receipts.
- Apply for Penalty Relief—If this is your first time messing up, ask about First-Time Abatement.
- Be Honest About Hardship—You might qualify for “Currently Not Collectible” status. You’ll still owe—but they’ll stop collection actions while you get back on your feet.
- Avoid Predators— If a company makes big promises but asks for big upfront fees—that’s a scam in a suit.
The IRS ain’t the boogeyman, but they don’t play fair, either. The longer you wait, the worse it gets. But the good news? You’ve got options—real ones —if you move smart and move now.
Don’t ignore it. Don’t panic. Don’t get played. Handle your business like the adult you are and protect your peace —and your pockets.
(Damon Carr can be reached at 412-216-1013.)
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