• Home
  • Blog
    • Business Partner Magazine Archive
  • Free Contests and Giveaways
  • Resources
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

I Missed an IRS Deadline. Now What?

February 1, 2019 by BPM Team

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
Smiling woman making a tax calculation

You may have many demanding priorities as a small business, partnership firm, or entrepreneur. What happens if you’ve missed an IRS tax-filing deadline? Besides receiving a notice from the IRS, you likely will face penalties. However, you shouldn’t panic if you have forgotten to file. Discover steps you can take after realizing you’ve missed the deadline.

Missing the tax-filing or payment deadline can be scary enough, but you don’t want to worsen the problem. Rather than handling the matter yourself, contact a CPA or a tax attorney to seek professional advice. Tax professionals can help you with your tax situation. They understand the specifics of delays in returns and can help you minimize your losses. An experienced CPA or a tax attorney can also help with reducing or appealing any penalties you may face. 

Request a Tax Filing Extension

The IRS allows an extension in legitimate cases. Apart from individuals, the IRS grants extensions to S and C class corporations, LLP companies, nonprofit organizations, and partnerships. In addition, you can file your extension form with the IRS electronically. For individuals, Form 4868 is applicable. Businesses and corporations need to file Form 7004 or Form 1138 to request an extension.

Note that the IRS permits a filing extension for filing the income tax return itself, not for paying taxes due. While you can be allowed extra time to file the return, you must pay your tax due within the original deadline. If you don’t have an exact calculation of taxes that you owe, you can pay an amount that approximates your estimated taxes due. 

What Are the Penalties for Missing a Deadline?

Penalties for missing a deadline can be significant, and the interest you pay can be compounded. The more you delay in paying, the greater the penalty will be.

The IRS assesses the following two types of penalties:

  • For late returns, the penalty is 5% of unpaid taxes per month or part of a month. The penalty period begins from the last date of filing returns, or from the last day of the extended period if it is granted. The base penalty amount is $205 or 100% of unpaid tax if that amount is less than $205. 
  • For those who do not pay taxes within the original or extended deadline, the penalty is typically 0.5% per month, or part of the month, of the unpaid tax amount.

If taxpayers default on both of the above grounds, they are liable to pay a maximum of 5% penalty per month, or part of the month, on the combined amounts.

A relief provision is available. If the IRS owes a refund to a taxpayer, the taxpayer would not face a penalty, even if the taxpayer files a return late. 

If you have missed an IRS deadline, it is not the end of the road. Proper professional guidance can help you. From dealing amicably with the IRS to reducing your dues and penalties, tax professionals can be helpful resources for you.

You may also like: Paying Taxes for Undocumented Immigrants – The ITIN

Image source: Shutterstock.com

Filed Under: Finance Tagged With: Accounting, finance, tax

Trackbacks

  1. The Benefits of Tax Resolution Services - Business Partner Magazine says:
    October 8, 2020 at 8:37 am

    […] I Missed an IRS Deadline. Now What? […]

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • Marketing is Thought to be Evidence of an Evolved Business: A Comprehensive Analysis
  • How Marketing Targets Vulnerable Communities
  • Growing Your E-commerce Business with NetSuite Oracle
  • From Frustration to Profit: How Effective Parking Enforcement Benefits Businesses
  • The Best IT security compliance (Especially When High Security Protocols Are Required)

Categories

Archives

Make Money Online – Free Course

  • Discover All The Shortcuts To Affiliate Marketing Success
  • Find Out How To Fill Your Site With New Leads And Customers
  • Discover How To Turn Your Passion Into Profits
  • Learn How To Write Copy That Gets Results Fast!
  • Discover How To Create Promote & Sell Your Own Products Online
  • Everything You Need To Know About Marketing Money Online
  • Strategies For Successful Web Entrepreneurs Inside
  • Discover How To Invest Smarter Grow Faster And Retire Rich
  • Email Marketing Strategies For Marketers And Entrepreneurs
  • Free training reveals how to build a successful six figure income online
  • Discover The Mindset Hacks You Need To Succeed
  • Free Marketing Memberships – Make Money Online

    Make money online free marketing memberships

    Tags

    Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design Digital marketing ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

    Disclosure

    We earn commissions if you shop through the links on this page.

    Digital Marketing Agency

    ReachMore Banner

    Business Partner Magazine

    Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

    Have a look around the site to discover a wealth of business-focused content.

    Here’s to your business success!

    Copyright © 2023 - Business Partner Magazine·

    x
    x