Optima Tax Relief Provides Guidance on What Taxpayers Should Do if They Missed the May 17 Deadline
The federal income tax deadline has officially passed for most taxpayers. However, there are some individuals who have yet to file their tax return or pay their tax balance.
Individual taxpayers that are owed a refund will not face a penalty for filing late. If you owe taxes and did not pay it by the tax deadline, it will be subject to penalties and interest.
Optima Tax Relief reminds individuals who did not file and owe a tax liability that they should file a return as soon as possible and pay as much as they can in order to reduce their penalties and interest. The IRS also provides free electronic filing options through October 15, 2021, to prepare and file returns electronically.
Taxpayers that are unable to pay their tax balance in full should review their payment options. The IRS provides information on payment plans for individuals that are unable to pay off their liability right away and need to make their payments in monthly installments.
Some individuals have been granted additional time to file their tax returns and to pay their taxes due. Individuals that are disaster victims, taxpayers living overseas, certain military service members and eligible support personnel in combat zones.
Filing soon is very important in order to avoid additional late-filing, and late payment penalties on unpaid taxes add up quickly. There are some cases where a taxpayer that files after the deadline may qualify for penalty relief. Those charged with a penalty have the option to contact the IRS by calling the number on the notice they received and explain why they could not file and pay on time.
Taxpayers that have a history of consistently filing and paying on time for the past three years as well as meeting other requirements often qualify for administrative penalty relief.